Advancing Chemistry. Improving Life.

annual report 2004

ROBERT A. WELCH

The Welch Foundation is a legacy to the world from Robert Alonzo Welch, a self-made man with a strong sense of responsibility to humankind, an enthusiastic respect for chemistry and a deep love for the state of Texas.

Born in South Carolina to a prominent family that fell on hard economic times, Mr. Welch came to Houston as a youth and later made his fortune in oil and minerals. Over the course of his career and life, he became convinced of the importance of chemistry for the betterment of the world.

Scientists, geologists and petroleum engineers were among his close friends and associates, as were the civic and business leaders of the day. From these associations and his own study, Mr. Welch determined that the pursuit of chemistry and chemical research held great potential for vast good and would continue to have a valuable impact on business, industry, global leadership and the human condition.

Mr. Welch gave serious thought to the disposition of his estate. His decisions reflected his belief in science and the role it would play in the future. In his will, Mr. Welch stated: “I have long been impressed with the great possibilities for the betterment of mankind that lay in the field of research in the domain of chemistry.” With his death in 1952, Mr. Welch left a generous portion of his estate to his employees and their families. The balance began what is now The Welch Foundation.

3 Table of Contents 3 CHAIRMAN'S M ESSAGE

4 THE WELCH FOUNDATION

6 THE HACKERMAN AWARD

8 THE WELCH AWARD

10 CHEM ICAL RESEARCH CONFERENCE

12 PROGRAMS

14 FOUNDATION GRANTS

18 PRINCIPAL INVESTIGATORS

32 DEPARTM ENTAL GRANTS

33 ENDOWED CHAIRS

34 FINANCIALS CHAIRMAN’S MESSAGE 2004 Annual Report

DUE TO THE FORESIGHT of Robert Alonzo As we prepare for Welch, The Welch Foundation has provided our next chapter, I am grants to support thousands of remarkable honored to announce chemists and their ideas since its founding in the appointment of a 1954. With this support – and the dedication of new member to the countless scientists – we have made tremendous board of directors who progress in advancing chemistry, improving life will offer guidance in and creating exciting new frontiers in the the coming years. Foundation’s first 50 years. Wilhelmina E. (Beth) Robertson joined the We have spent the past year celebrating these board in September and brings a great deal of accomplishments while, at the same time, eager- business acumen and a wealth of experience ly looking forward to the journey still ahead. with community organizations. Her commitment Through the past 50 years, Welch’s grants, schol- to the ideals the Foundation was founded on arships, endowed chairs and awards have helped will be a major asset as we continue on our many scientists in their search for answers. The exciting journey. answers they find are illuminating and exciting – As our 50th year anniversary becomes part of as are the new questions that arise. This ongoing history and we take our first steps into the process has led us to many new frontiers. In future, it is worth noting that things will surely years to come, this quest for knowledge will change. The people involved in our Foundation continue to push back boundaries as new gener- will change, the questions we ask may change, ations of bright chemists pursue their big ideas interdisciplinary lines will continue to blur with insatiable curiosity. and the scientific areas we support may acquire As we know, all great scientific journeys begin new names, but there is one thing that most with a question. Therefore, as we take our first certainly will remain constant: our mission. step into the next 50 years, we must ask our- Since its founding, The Welch Foundation has selves, “What’s next?” None of us knows all the supported scientists who advance chemistry new insights that are even now being gained in and improve life. With our shared commitment chemical labs across Texas – and across the to these ideals, we will continue to advance world. Nor can we specifically predict what our chemistry and improve life for the next 50 years deepening understanding will ultimately mean and beyond. to medicine, materials and technology. A half century ago, Robert Alonzo Welch didn’t know, and probably couldn’t fully envision, where his support for chemistry would R ICHARD J. V. JOHNSON eventually lead us. But he knew then – as we CHAIRMAN OF THE BOARD know today – that the journey is fascinating and rewarding. And we know that, in part, because we have come so far in the first 50 years.

5 THE WELCH FOUNDATION Leadership Dedicated to Foundation’s Mission

Board of Directors Since 1954, The Welch Foundation has been dedicated to advancing chemistry and improving life through its support of basic research in chemistry. Its mission and ongoing operations are the responsibility of the board of directors, the The board of directors is charged with the stewardship of The Welch Foundation with scientific advisory board and a professional staff, responsibilities that include both the business and scientific operations of the Foundation. all of whom play critical roles in ensuring FROM LEFT Robert Welch’s vision continues to be carried out. Ernest H. Cockrell, secretary J. Evans Attwell, vice chairman Wilhelmina E. (Beth) Robertson Richard J. V. Johnson, chairman Dennis Hendrix, treasurer

Long-time Board Member Charles Duncan Retires Charles W. Duncan, Jr. retired from The Welch Foundation’s board of directors in September, after almost 20 years of service. The board recognized Duncan’s lead- ership, dedication and contributions at the Welch Award banquet in October and presented him with a resolution to express its sincere appreciation for his long service, enthusiasm, ideas and dedication to the Foundation. Welch Foundation Chairman Richard J. V. Johnson, left, presents the board’s resolution to retiring board member Charles Duncan for his long-standing commitment and contributions to the Foundation.

6 Scientific Advisory Board STANDING FROM LEFT E. J. Corey, Harvard University Joseph L. Goldstein, The University of Texas Southwestern Medical Center at Dallas Norman Hackerman, SAB chairman, Rice University and The University of Texas at Austin Yuan T. Lee, Academia Sinica and University of California, Berkeley Peter G. Schultz, Scripps Research Institute and Genomics Institute of the Novartis Research Foundation

The scientific advisory board (SAB) is comprised of nine SEATED FROM LEFT renowned leaders in chemistry and related sciences, Peter B. Dervan, including five Nobel laureates. The SAB advises the board California Institute of Technology of directors on scientific issues, evaluates proposals for William N. Lipscomb, Jr., research grants, reviews and considers nominations for Harvard University the Welch Award in Chemistry and the Norman Marye Anne Fox, Hackerman Award in Chemical Research, and one of its University of California, San Diego members presides over each annual conference. The SAB Ahmed H. Zewail, also helps oversee the Foundation’s visiting lecture series, California Institute of Technology and departmental grants and other programs. National Science Foundation Laboratory for Molecular Sciences

Foundation Staff Led by President and Chief Operating Officer Norbert Dittrich, the staff oversees and implements the day-to-day operations of the Foundation.

FROM LEFT Carolyn Kahlich, Norbert Dittrich, Carla Atmar, Kathy Kirk, Rachel Homme, Ron Page, Sherry White, Sindy Eskue.

7 THE HACKERMAN AWARD Ma Honored as Rising Star in Chemistry

Fascinated by the structure-function relationship of The Norman Hackerman Award in Chemical Research, established in 2001, recognizes out- biological molecules, Jianpeng Ma uses computer standing young chemists at Texas institutions. In 2004, the award was presented to Dr. Ma, simulation as one tool to explore this connection. A associate professor at Baylor College of Medicine major research breakthrough occurred when he found and Rice University. Dr. Ma is the third person to be recognized a way to simulate protein by The Welch Foundation as a rising star in chemistry. The motion without knowing Hackerman Award pays tribute to the exact coordinates and Norman Hackerman, longtime chairman of The Welch amino acid sequences of Foundation’s Scientific Advisory Board. The award also serves to protein structures. His nurture the advancement of chemistry by recognizing excep- groundbreaking approach tional young scientists for their to biochemistry, biophysics groundbreaking chemical research. Dr. Ma received the honor at a and structural biology Jianpeng Ma (center) is congratulated on winning the 2004 Hackerman Award by Richard J. V. Johnson (left) luncheon held Feb. 3, 2004, in will help scientists better and Norman Hackerman. Dr. Ma is the third recipient the Texas Medical Center in of the award recognizing rising stars in chemistry. understand the chemical Houston. The award included a $100,000 check, certificate and specially basis for diseases. designed “rising star” crystal sculpture. “I am extremely honored to receive this pres- tigious award,” says Dr. Ma. “It is especially meaningful since I received my first grant in Texas from The Welch Foundation. The Foundation’s support has played an important role in my career and has allowed me to contin- ue much of my work. I am excited about the research challenges and possible discoveries that lie ahead, and hope that I can live up to the expectation of this award.” “Dr. Ma is an outstanding research chemist as well as a dedicated educator,” says Foundation Chairman Richard J. V. Johnson. “His love of learning and of teaching, combined with his per- sistence and diligence, are an inspiration to both his colleagues and students.”

8 In his joint appointment, Dr. Ma divides his “Dr. Ma is a rising star in the state of Texas,” time between Baylor College of Medicine’s says Salih J. Wakil, chair of the department of department of biochemistry and molecular biol- biochemistry and molecular biology at Baylor ogy and Rice University’s department of bioengi- College of Medicine. “His outstanding contribu- neering. Currently Dr. Ma and his group are tions to so many aspects of structural biology studying the structure-function relationship of will undoubtedly have a long-term impact on biological molecules such as proteins. By using the research of chemistry and biochemistry.” computer simulation to understand this relation- “It is my opinion that Dr. Ma is one of the ship, he is pushing the boundaries of modern most outstanding young investigators in chemi- computational biophysics and structural biology. cal research in Texas,” adds Nobel laureate “Dr. Ma is not afraid to delve into complex Richard E. Smalley, the Gene and Norman research problems and is able to see connections Hackerman Professor of Chemistry and professor that other people would overlook,” says Dr. of physics at Rice University. “He is very deserv- Hackerman. “His innovative methods of using ing of the Hackerman Award and the recognition technology for solving such problems have it gives up-and-coming scientists who are allowed him to glean useful information that expanding the frontiers of science.” will further our fundamental understanding of Any Texas college or university may nominate chemistry. His work shows great promise for up to two candidates each year for the the future.” Hackerman Award. The $100,000 award recog- Born in China, Dr. Ma was influenced by his nizes scientists making notable strides in basic father, a mechanical engineer, and his mother, research in chemistry. Award candidates must be who is a chemist. He received his undergraduate 40 years of age or younger and have spent the last three years conducting chemical research in “Dr. Ma is not afraid to delve into complex research Texas. The Hackerman Award is not intended to problems and is able to see connections that other peo- finance research activities of the recipient, nor is ple would overlook. His innovative methods of using the recipient required to provide any services as a condition of accepting the award. technology for solving such problems have allowed him Award nominations are due in September to glean useful information that will further our funda- each year and must be submitted by letter from mental understanding of chemistry. His work shows Texas educational institutions. Nominations also

great promise for the future.” —NORMAN HACKERMAN should include supporting letters from three individuals in the nominee’s field, at least two of degree in physical chemistry at Fudan University which should come from colleagues at other col- in Shanghai in 1985 and a doctorate in chem- leges or universities. Award recipients are select- istry from Boston University in 1996. He ed by The Welch Foundation’s board of directors completed his postdoctoral work at Harvard based on recommendations of the Scientific University in 2000 and then came to Texas to Advisory Board. continue his research, investigative collabora- tions and teaching as a faculty member at Baylor College of Medicine and Rice.

9 THE WELCH AWARD Bard Lauded for Life’s Work in Electrochemistry

Allen J. Bard has electrified the scientific community The Welch Foundation honored Dr. Bard, the 34th recipient of the prestigious award, at a ban- over the past half century with his significant quet in Houston Oct. 25. The international award honors scientists who have dedicated their contributions to chemistry. While his discoveries are careers to advancing the frontiers of chemistry. vital to electrochemistry, their impact increasingly Dr. Bard, currently the Hackerman-Welch Regents Chair in Chemistry and Professor at The crosses interdisciplinary University of Texas at Austin, is the sec- ond UT professor to receive the award. lines and positively affects Numerous scientists, including a many other areas of number of Dr. Bard’s former students and colleagues, attended the celebration science. His work as an along with business and academic lead- ers from across the nation. Dr. Bard’s educator and mentor has wife Fran, daughter Sara, son Ed and daughter-in-law Becky also were in affected countless young attendance as well as three of his four minds and his work in grandchildren: Alex, Rachel and Marlee. “Dr. Bard followed his intellectual shaping science policy has curiosity down a variety of paths that have led him to a prolific scientific left a lasting impression on Allen J. Bard and his career,” says Richard J. V. Johnson, chairman, The wife, Fran, celebrate at the the scientific community. Welch Award banquet. Welch Foundation. “His ability to answer tough questions in the lab has ultimately improved life, For these many significant achievements, Dr. Bard which is the essence of The Welch Foundation.” “Dr. Bard came to The University of Texas in was presented the 2004 Welch Award in Chemistry. the late 1950s and brought a great deal of impetus and energy to the chemistry depart- ment,” adds Norman Hackerman, chairman of the Welch Scientific Advisory Board. As then- chemistry department chair, Dr. Hackerman was responsible for recruiting Dr. Bard to UT in 1958. “He is a good scientific citizen. He teaches and mentors numerous students, writes and publishes work, shapes scientific policy, leads scientific organizations and continuously makes meaningful contributions,” says Dr. Hackerman. Dr. Bard became interested in electrochemistry when the field was largely devoted to such appli- cations as making batteries and electroplating. He

10 Steve Pearce, Welch board member Wilhelmina E. (Beth) Robertson, Peggy Barnett, Jennie Hendrix, Welch board member Dennis Hendrix and Bill Barnett gather at the 2004 Welch Award banquet.

interested in students, he is interested in their growth – how they can get the most out of life – and he’s absolutely wonderful at the human level as a teacher and colleague. None better.” Dr. Bard’s pioneering work continues in the lab today, where he and his team are increasingly believed that electrochemical methods also could focused on developing biological applications for provide sensitive tools to help scientists better their work and searching for new frontiers. understand organic, inorganic and physical Dr. Bard earned his undergraduate degree in chemistry. His research led to the discovery of chemistry at City College of New York (1955), electrochemiluminescence (ECL), which for the and his graduate (1956) and doctoral (1958) first time tied light and electricity together in degrees at Harvard University. chemistry. The method produces light within a He is a member of the National Academy system, which in turn creates a very sensitive and of Sciences and served as editor-in-chief of selective method of analysis. Today, ECL is wide- the Journal of the American Chemical Society ly used for immunoassays, such as detecting the from 1982 to 2001. He has received numerous HIV virus, and bioassays, such as DNA analysis. honors, including the American Chemical A pioneer in utilizing solar energy, Dr. Bard Society Priestley Medal (2002), National also discovered ways to generate electricity with Academy of Sciences Award in Chemical Sciences light, which led to him to photochemical meth- (1998), American Chemical Society Analytical ods that can decompose pollutants. First patent- Chemistry Award in Electrochemistry (1988), ed in the 1970s, the methods have recently Luigi Galvani Medal of the Italian Chemical found commercial applications such as in self- Society (1992), Electrochemical Society Olin cleaning glass. In his many years of working with Palladium Medal (1987), New York Academy of solar cells, Dr. Bard and his team also discovered Sciences Award in Mathematics and Physical small and dense nanocells that have the potential Sciences (1986) and Bruno Breyer Memorial to house massive amounts of computer memory. Award of the Royal Australian Chemical Institute Throughout his career, Dr. Bard has been par- (1984), among others. ticularly adept at seamlessly integrating the A certificate, gold medallion and check for newest instrumentation into his own work. For $300,000 were presented to Dr. Bard at the ban- example, he built upon the scanning tunneling quet for his outstanding contributions to electro- microscope that won its inventors the Nobel Prize chemistry and ceaseless efforts to improve life in Physics in 1986 to create the scanning electro- through science. chemical microscope. The device, which allows “It is an honor to receive the Welch Award in scientists to study chemical reactions and surfaces Chemistry because there are so many wonderful at the atomic level, has become particularly help- candidates and so few awards of this magnitude ful in imaging and analyzing surface structures for basic research in chemistry,” says Dr. Bard. and measuring reaction rates. “I am grateful to have had a long-standing “We’ve been in a strong student-teacher rela- affiliation with The Welch Foundation, particu- tionship my whole life,” says Larry Faulkner, UT larly since I began my career in Texas.” president and former student of Dr. Bard. “He is

11 CHEMICAL RESEARCH CONFERENCE Scientists Explore Developments Across Nanotechnology Field

The Welch Foundation’s 48th annual Conference on “This year’s conference focused on two emerging areas of great importance in chemistry: nano- Chemical Research, “Chemistry of Self-Organized technology and biotechnology,” says conference chair Marye Anne Fox, Welch Scientific and Hybrid Materials,” addressed a burgeoning area Advisory Board member and chancellor of the of scientific research: nanotechnology. The event, University of California, San Diego. “A lively exchange of ideas between leading which drew more than researchers in the field enabled attendees to 400 participants, was learn about other areas of held Oct. 25-26 at the nanotechnology and how others’ research may Wyndham Greenspoint influence their own activities,” says Dr. Fox. Hotel in Houston. “This is precisely why the conference is hosted each year – so that scientists can learn from each other by sharing their knowledge, information and enthusiasm for chemistry.” Conference presenters, covering broad areas of Wilhelmina E. (Beth) Robertson, Richard J. V. Johnson and Norbert nanotechnology, addressed current issues and Dittrich attend the 48th annual future directions of nanotechnology during four Conference on Chemical Research. sessions over the two-day conference. Richard M. Crooks of Texas A&M University served as discussion leader for the first panel. Timothy M. Swager, Massachusetts Institute of Technology; Chad A. Mirkin, Northwestern University; and David M. Walba, University of Colorado, presented research findings that focused on the use of nanostructures in controlling chemical sensors, biodiagnostic responses and liquid crystalline properties. T. Randall Lee, University of Houston, led the second panel – a discussion on composite nanoscaled arrays and practical uses of nanomaterials and nanocrystals in optic and photonic applications. David N. Reinhoudt,

12 The 48th annual Conference on Chemical Research featured world-renowned speakers and discussion leaders who focused on their research in various areas of nanotechnology.

“A lively exchange of ideas between leading technology and the use of nanocomposites researchers in the field enabled attendees to learn for practical and functional nanoscaled objects, such as nanomachines, computers and about other areas of nanotechnology and how electroresponsive components. Presenters others’ research may influence their own activities. included Karen L. Wooley, Washington This is precisely why the conference is hosted University at St. Louis; Jean M. J. Fréchet, each year — so that scientists can learn from each University of California, Berkeley; and James other by sharing their knowledge, information M. Tour, Rice University. Allen J. Bard presented the 2004 Welch Award Lecture, “An and enthusiasm for chemistry.” —MARYE ANNE FOX Electrochemical Life,” as part of the session. “Nanotechnology is a rapidly growing University of Twente; Colin P. Nuckolls, discipline and we are honored to have featured Columbia University; and Marie-Paule Pileni, these world-renowned presenters,” says Dr. Fox. Pierre & Marie Curie University made “Their work has given us a glimpse into the supporting presentations. future of this fascinating area of research and The third session, led by Eric V. Anslyn of showcased the significant role chemistry plays The University of Texas at Austin, explored in bettering our society and the quality of nanotechnology at the interface with biology. our lives.” Presentations by Milan Mrksich, University of Chicago; Jean A. Chmielewski, Purdue University; and Reza M. Ghadiri, Scripps Research Institute, focused on biological implications of nanotechnology, bringing together the fields of biology and chemistry. The closing session, titled Synthetic Approaches to Nanoscaled Macromolecules, was led by Vicki L. Colvin, Rice University. It illustrated the role of synthesis in nano-

13 PROGRAMS Grants and Programs Advance Chemical Knowledge

Research Grants

The Welch Foundation awarded $22.5 million in grants to 134 researchers in 2004, funding 30 new proposals and renewing support for 104 projects. Total support for chemical research has grown to $520 million since the Foundation’s inception in 1954, with 431 principal investiga- tors currently receiving Welch funding. Each research grant provides a minimum of $150,000 over three years and is renewable based on a proposal submitted by the researcher. The three-year grants support research in chem- istry by full-time faculty members with tenure or those who are on a tenure track at institutions of higher education in Texas. A listing of the principal investigators currently receiving Welch Foundation grants, their institutions and the titles of their research projects begins on page 18.

Departmental Grants

In 2004, 42 chemistry departments at small and medium-sized Texas educational institutions received Welch departmental grants. These grants fund faculty and student support and provide laboratory equipment and supplies for research. By giving students first-hand experience in basic research and the opportunity to participate in industry meetings and conferences, the Foundation hopes to expand students’ interests in the field of chemistry. Recipient institutions of the departmental grants are listed on page 32.

14 Welch Chairs first-hand exposure to chemical research, work- ing closely alongside faculty researchers in their Recognizing that chemical education is vital labs at Texas university campuses. to the future success of research in the state, “The program is based on a simple, but pow- The Welch Foundation has attracted both erful idea: give young people a quality, authentic renowned and some soon-to-be renowned experience and you will influence them for the names in science to Texas through its endow- remainder of their lives,” says J. J. Lagowski, ment of chaired positions. Currently, the director of the Welch Summer Scholar Program Foundation endows 42 chairs in chemistry at since its inception in 1984. 20 Texas educational institutions. This past summer, 46 students from 27 high A list of Foundation chairs and chair holders schools in Texas participated in the five-week is on page 33. program in world-class laboratories at The University of Texas at Austin, The University of Texas at Arlington, The University of Texas at Visiting Lecture Series Dallas, the University of Houston and Texas Each year, various colleges and universities Tech University. throughout Texas welcome scientific presenta- The juniors and seniors who participate are tions by researchers from across the country as chosen on a competitive basis, evaluated by a part of The Welch Foundation’s annual visiting selection committee made up of the program lecture series. Students and faculty who attend coordinators at each of the participating univer- these lectures enhance their chemistry studies sities. The committee reviews the students’ SAT by being exposed to some of the best scientific scores, academic standings and teacher recom- minds in the world who share their insights and mendations. knowledge about various areas of chemistry. The primary goal of the WSSP is to provide For the 2003-2004 academic year, five talented Texas students with learning opportuni- scientists made presentations at 15 universities ties above and beyond those normally available across Texas. in high school education. WSSP students gain This year’s speakers included Fred Wudl, exposure through assignment to an ongoing University of California, Los Angeles; David R. research group, a guest speaker series, tours of Corey, The University of Texas Southwestern chemistry-based research facilities, the presenta- Medical Center at Dallas; Michael P. Doyle, The tion of personal research findings and life on a University of Maryland, College Park; Thomas J. typical university campus. Meyer, Los Alamos National Laboratory; and “The WSSP research experience profoundly George Lester, Northwestern University. affects the way students think about the world and their future in it, whether they become sci- entists or leaders in other fields such as the arts, Welch Summer Scholar Program government or commerce,” says Dr. Lagowski. Over the past 20 years, the Welch Foundation’s For additional information on the summer Summer Scholar Program (WSSP) has given program visit http://www.utexas.edu/research/ more than 1,000 qualified high school students chemed/lagowski/WSSP/.

15 FOUNDATION GRANTS Welch Grants Help Scientists Take Risks, Push Research Boundaries

Rasika Dias of the most inert bonds, such as the carbon- Professor, Graduate Advisor hydrogen bonds found in gasoline, under Department of Chemistry and Biochemistry remarkably mild conditions. The University of Texas at Arlington Another area of research includes his work When Rasika Dias began researching metal com- with MOLED, which stemmed from his original plexes at The University of Texas at Arlington in Welch-funded research. By mixing various lig- 1992, he had no idea that a decade later he ands with copper, silver and gold metals, Dr. would be developing luminescent materials for Dias produces colorless material which, when “metal-organic” light-emitting devices (MOLED) put under a UV lamp, becomes brightly lumi-

Rasika Dias and sensor applications. But when his original nescent. The emitted color depends on the line of research presented the new direction, he chemical composition of the luminescent mater- credits the Foundation’s flexibility with enabling ial, temperature and the type of surrounding him to pursue those new branches of study. molecules. His current research in understand- “The Welch Foundation’s grants support ing how to control the color could eventually exploratory research while allowing chemists the lead to practical applications such as thinner, freedom to expand into new areas,” says Dr. brighter and more energy efficient flat panel dis- Dias. “The grant was tremendously helpful as I plays or sensor devices that can detect potential- launched my studies and has provided the ongo- ly harmful airborne molecules. ing support I have needed to delve into related, “Welch’s support of my lab runs deeper than yet uncharted territories.” grants alone,” says Dr. Dias. “Every year, I host Dr. Dias, who works in inorganic and eager, intelligent high school students from organometallic chemistry, has received support Welch’s Summer Scholar Program who enthusi- from Welch since obtaining his first grant in astically contribute to the productivity of my 1995. The funding facilitated his investigation lab.” The researcher also was selected by the of metal ions, subjecting them to unusual Foundation as a Robert A. Welch Lectureship environments and studying the resulting Speaker for 2004 - 2005. chemistry. Dias also has attracted funds from several other sources, including the National Paul S. Cremer Science Foundation. Professor, Department of Chemistry Texas A&M University Since beginning his work, Dr. Dias and his research group have developed several unique Paul S. Cremer arrived at Texas A&M University ligands with high fluorine content – essentially in September 1998. The next June, he was using molecular containers with Teflon-like walls. his first Welch grant to study the fundamental When metal ions are placed in (bonded to) these physical chemistry of how macromolecules and Teflon “coated” containers (ligands), due to the colloidal systems interact with water. Before unusual surrounding, they show unique chem- receiving his second Welch grant in 2002, Dr. istry, rarely observed with any other system. Cremer and his team had already begun solving These ligands allow the team to stabilize highly a problem that dated back to the late 19th cen- reactive metal complexes and to study their tury – the Hofmeister Effect. molecular structures and bonding. Dr. Dias also In 1888, Franz Hofmeister discovered that creates metal catalysts that can activate some when the nature of the salt within a solution is

16 changed, the materials that salt out to the bot- student at the Organic Chemistry Institute, tom of the test tube follow a regular series. Until University of Zürich. recently, no one knew why. By looking at water’s “I first came to know The Welch Foundation fundamental structure near lipid monolayers and during my organic chemistry doctoral studies at how different anions affect water structure, Dr. Rice University when my supervising professor Cremer was able to make significant progress in provided me summer support with Welch grad- resolving this 116-year-old problem. uate fellowships,” says Dr. Mabry. “However, I His breakthrough came through the laser- am most grateful for the more than 40 years of based methods he used in his research. Water support from the Foundation. This support con-

Paul S. Cremer that is absorbed near an interface can be difficult tinues to serve as the cornerstone of my efforts to study since the water in bulk solution gives to build a natural products chemistry program an overwhelming response. Using his nonlinear in the biological sciences at UT.” optical technique, a type of vibrational spec- Dr. Mabry’s Welch-supported research has led troscopy, Dr. Cremer and his team were able to to many National Science Foundation and look at the nature of the water molecules near National Institutes of Health grants and more the interface and try to understand some of their than 650 scientific publications with more than characteristics. 60 doctoral and masters students. Understanding this fundamental chemistry Dr. Mabry’s research covers the structures, has potential implications for areas ranging chemistry and biosynthetic pathways of a wide from how pathogens attach to cell membranes variety of new natural products, including many to cell-cell signaling. flavonoids, terpenoids, alkaloids, and red-violet “Welch has played a significant role in my and blue betalain pigments. His work establishes ability to resolve this long-standing problem, the biological functions of these compounds in conduct important ongoing research and gain plants and ecosystems as well as their medicinal additional funding for my investigations,” says value. His studies focus on a wide range of the Dr. Cremer. “Everything from my ability to compounds’ specific properties, including their attempt high-risk fundamental science to my antioxidant, antitumor, antibacterial, antifeedant, ability to compete for national grants has been phytoalexin and neurotoxic activities. impacted to some degree by having been sup- “No other funding source allows the flexibility ported – almost from the time I arrived at A&M to pursue unexpected findings requiring new – by The Welch Foundation.” directions for the research. This has been extremely important for the expansion of our Tom J. Mabry studies,” says Dr. Mabry. “Among the several hun- Professor, Molecular Cell and Developmental Biology, dred natural products produced by any single The University of Texas at Austin plant species, there are always a few compounds Tom J. Mabry has received continuous Welch with unique structures, which often exhibit excit- Foundation support since 1963 – a year after he ing and unusual chemical and biological proper- joined The University of Texas at Austin’s botany ties. With the freedom the Welch grant allows, department – for his investigations of the chem- the goals and direction of our research on the istry and biochemistry of natural products, a chemistry and biochemistry of natural products field of research he pursued as a postdoctoral can change from one day to the next.” Tom J. Mabry 17 William H. Klein The Foundation’s ongoing support of cancer- related study at the facility reaches further than Chairman, Department of Biochemistry and Molecular Biology; Robert A. Welch Distinguished Chair in Dr. Klein’s work alone. Three more of the Chemistry, The University of Texas M. D. Anderson department’s faculty members are currently Cancer Center supported by the Foundation. As chairman of the biochemistry and molecular The researchers are using Welch support to biology department at The University of Texas better understand cell processes at a biochemical M. D. Anderson Cancer Center, William H. level and to leverage additional grants. Xiaomin Klein’s ultimate mission is to cure cancer. But Chen, an assistant professor, received his first

William H. Klein first he must uncover key mechanisms in cell grant from Welch and now also receives support growth, differentiation and death in order to from the National Institutes of Health. Professor understand the biochemical processes involved Sharon Roth Dent has used her Welch grants to in the disease. make significant discoveries regarding chromatin The primary thrust of Dr. Klein’s research is – one of the biggest areas in biochemistry of determining how transcription factors work to transcription factors today. Andres Bergmann, an program genetic material. His work with gene assistant professor, is using Welch support to transcription began garnering Welch Foundation study cell death in fruit flies. support in 1991, when he was studying the for- Jack Gill mation of sea urchin embryos and early cell fate decisions. The grant enabled Dr. Klein, who was Interim Chair, Department of Chemistry Texas Woman’s University already receiving federal support for his work, to advance into other systems including mam- Providing meaningful educational opportunities malian systems and later to specifically study in chemistry is Jack Gill’s top priority. As interim retina and muscle tissue. chair of the chemistry department at Texas In one resulting project, Dr. Klein’s team dis- Woman’s University, his job is to ensure that stu- covered some of the key transcription factors in dents get the most out of their education – both mice that regulate the differentiation of ganglion in the classroom and the lab. cells in the neural retina. In another project, his “Our operating budget supports the teaching team is investigating the role of myogenin, a function, but we often rely on other sources to muscle-specific transcription factor, during help fund our research, which is why Welch’s skeletal muscle development in mice. departmental grant has been so important to us,” Dr. Klein continued to receive Welch grants says Dr. Gill. through 1998, when he was named the Robert Since the first grant in 1989, TWU’s chem- A. Welch Distinguished Chair in Chemistry. istry department has received continual support “I am very enthusiastic about The Welch from The Welch Foundation. In addition to Foundation and its support for both my work enabling pilot research studies, the grant has and our department,” says Dr. Klein. “It has strengthened the department’s chances of secur- been pivotal in getting some seminal research ing additional funding due to the actual results projects off the ground and keeping them they are able to present. moving.” “The Welch grant is often used as seed money for research, but another of its purposes is to

18 enhance the educational experience and generate damental research that they have,” says Dr. interest in chemistry among students, and there Sanchez, chair of UHCL’s chemistry department. is a great deal of flexibility in how we reach As a direct result of the grants, several mem- those Foundation goals,” says Dr. Gill. “For bers of the faculty have leveraged additional instance, the department currently needs to support from such agencies as the National replace a mass spectrometer that we bought Aeronautics and Space Administration and the 15 years ago. Our vendor no longer has the Texas Higher Education Coordinating Board. spare parts to fix the equipment, but our One faculty member also secured individual Welch departmental grant can help purchase funding from the Foundation as a principal

Jack Gill a new one.” investigator. The Foundation’s grants also contribute to the The Welch-supported departmental research overall success of the department’s longer-term has yielded significant results in many areas of goals, such as expanding courses – and poten- chemistry. Research has shed light on the origin tially the degrees – offered at TWU. of enantiomeric bias in nature, which is directly “We will be adding a concentration in mam- linked to understanding the origins of life in the malian biochemistry,” says Dr. Gill. “As interest universe. Other projects have resulted in a more in the concentration grows, we hope to offer insightful mechanistic understanding of the reac- biochemistry as a major. And in the much tions of organic, biochemical and organometallic longer term, we hope to offer study in forensic chemistry and advanced materials. Those find- chemistry because of its close tie-in with bio- ings have enabled faculty and students to design chemistry and analytical chemistry.” and synthesize a variety of structurally disparate molecules, running the gamut from new metal- Ramiro Sanchez organic polymers, which hold great potential for Program Chair, Professor, Department of Chemistry use in industrial settings, to the development of University of Houston, Clear Lake crops resistant to harsh environmental condi- The Welch Foundation began supporting the tions. Other applications could include bioreme- chemistry department at the University of diation technologies for treatment of contami- Houston, Clear Lake through a departmental nated wastes and hazardous materials, and novel research grant in 1990. Since then, the anti-tumor drugs. Foundation has had a profound impact on what “Research findings achieved by our staff and the department has been able to accomplish. students are not only very important with Ramiro Sanchez Over the last 15 years, UHCL’s chemistry fac- respect to providing a better understanding of ulty has collectively authored more than 250 fundamental processes in all of the major areas peer-reviewed publications in national and inter- of chemistry, but also have become the basis for national journals. More than half of those have many new technologies that will benefit society been the direct result of Welch’s departmental in general. Neither the fundamental research research grants. findings nor their eventual technological benefits “The Foundation has been extremely impor- to society could have been realized without tant to our chemistry department. Without its support from the Foundation,” says Dr. Sanchez. support, our faculty and students would not have been able to carry out the amount of fun-

19 PRINCIPAL INVESTIGATORS

PRINCIPAL INVESTIGATOR INSTITUTION TITLE OF RESEARCH

Rigoberto C. Advincula University of Houston Synthesis and Properties of Dendrimeric and Hyperbranched Conjugated Polymers Tethered to Nanoparticles and Surfaces Glenn Agnolet Texas A&M University Molecular Vibrational Spectroscopy Using Low Temperature Tunnel Junctions Thomas A. Albright University of Houston Dynamics of New Materials Roland E. Allen Texas A&M University Response of Molecules to Femtosecond-Scale Laser Pulses Eric V. Anslyn The University of Texas at Austin Fingerprinting Pectins and Tannins in Wine Richard J. Auchus The University of Texas Structural Units and Mechanisms that Control the Southwestern Medical Center at Dallas Regiochemistry and Stereoselectivity of Progesterone Hydroxylation by Human CYP17 and CYP21B Steven M. Bachrach Trinity University Solvent Effect on Nucleophilic Substitution at Sulfur and Selenium Vemuri Balakotaiah University of Houston Modeling and Analysis of Spatiotemporal Patterns in Homogeneous and Catalytic Reactions and Reactors Steven Baldelli University of Houston The Orientation of Room Temperature Ionic Liquids at the Solid-Liquid Interface Studied with Electrochemical and Nonlinear Optical Techniques Kenneth J. Balkus, Jr. The University of Texas at Dallas Zeolite Encapsulated Metal Complexes Allen J. Bard The University of Texas at Austin Applications of Scanning Electrochemical Microscopy Enrique V. Barrera Rice University Highly Integrated Nanotube Molecular Composites Bonnie Bartel Rice University Novel Peroxisomal Processes in Plants Richard A. Bartsch Texas Tech University Synthetic Hosts for Recognition of Ionic and Molecular Guests Nathan L. Bauld The University of Texas at Austin Cation Radical Diels-Alder Cycloadditions: New and Efficient Methodology and Novel Electron Transfer Mechanisms Hagan Bayley Texas A&M University Synthesis and Photochemistry of Caged Thiophosphoryl System Health Science Center Proteins John L. Bear University of Houston Structure-Reactivity Relationships in Dirhodium and Diruthenium Complexes Kathleen M. Beckingham Rice University Physical Studies of Calmodulin and Androcam Mark T. Bedford The University of Texas Small Molecule Inhibitors of Arginine Methyltransferase M. D. Anderson Cancer Center Identified by High-Throughput Screening Victor Behar Rice University Immobilization of Chiral Ketone Catalysts for Asymmetric Epoxidation Michael J. Benedik University of Houston Quaternary Structure Contributions to Enzyme Catalysis: A Do-Decameric Cyanidase David E. Bergbreiter Texas A&M University Catalytic Asymmetric Synthesis in Nontraditional Media Andreas Bergmann The University of Texas Structural Analysis of the Cell Death Inducer HID M. D. Anderson Cancer Center Ivan Bernal University of Houston The Phenomenon of Conglomerate Crystallization John W. Bevan Texas A&M University Probing Intermolecular Interactions Emphasizing Backward-Wave Oscillator Submillimeter Spectroscopy Michael A. Bevan Texas A&M University Ensembles of Levitated Diffusing Colloids as Novel Biomolecular Probes

20 PRINCIPAL INVESTIGATOR INSTITUTION TITLE OF RESEARCH

Ilya B. Bezprozvanny The University of Texas Structure-Functional Studies of Inositol (1,4,5) Southwestern Medical Center at Dallas Trisphosphate Receptor Ligand-Binding Domain Narayan G. Bhat The University of Texas-Pan American Stereodefined Alkenylboronate Esters in Regio- and Stereoselective Organic Syntheses Edward R. Biehl Southern Methodist University Synthesis of Multi-Substituted Polycyclic Compounds Using Aryne Methodology Michael C. Biewer The University of Texas at Dallas Preparation of SAM’s with Organic Photochromic Component W. E. Billups Rice University Synthesis of New Molecular Systems David M. Birney Texas Tech University Continuing Studies of Pseudopericyclic Reactions Eric R. Bittner University of Houston Quantum Simulations of Polymer Light Emitting Diodes Michael T. Blanda Texas State University-San Marcos Stereoselective Syntheses of Calix[6]arene-Based Supramolecular Assemblies: From Discovery to Design Paul Blount The University of Texas Determining Lipid-Protein Interactions for a Channel Southwestern Medical Center at Dallas Gated by Membrane Tension James E. Boggs The University of Texas at Austin Structural Chemistry Paul S. Braterman University of North Texas Control of Structure and Reactivity in Layered Double Hydroxides James M. Briggs University of Houston Exploring the Plasticity of Binding Sites Jennifer S. Brodbelt The University of Texas at Austin Cation-Pi Interactions in the Gas Phase Philip R. Brooks Rice University Studies of Electron Transfer Processes Witold Brostow University of North Texas Polymer Blends: Liquid Crystals + Epoxies and Their Molecular Structures R. Malcolm Brown, Jr. The University of Texas at Austin Applications of Atomic and Molecular Imaging with Transmission Electron Microscopy Karen S. Browning The University of Texas at Austin Interaction of Cap-Binding Protein with an RNA Analog of the m7GpppG Cap Richard K. Bruick The University of Texas Mechanism-Based Probes to Investigate Prolyl Southwestern Medical Center at Dallas Hydroxylases in the Hypoxic Response Pathway Kevin Burgess Texas A&M University Accelerated Catalyst Discovery and Optimization Ronald A. Butow The University of Texas Interactions Between Mitochondria and the Nucleus Southwestern Medical Center at Dallas John D. Buynak Southern Methodist University Design and Synthesis of Small Molecule Inhibitors of Medicinally Important Enzymes Chengzhi Cai University of Houston Dendrimer End-Capped Oligophenylenes Alan Campion The University of Texas at Austin Structures and Reactions of Molecules Adsorbed on Metal and Semiconductor Surfaces Phillip B. Carpenter The University of Texas How Methylation Influences the DNA Damage Response Health Science Center at Houston Bert D. Chandler Trinity University Dendrimer Templates for Compositional Control of Bimetallic Catalysts Sandy Chang The University of Texas Structural and Functional Analyses of the Telomere M. D. Anderson Cancer Center Binding Protein Pot1 Walter G. Chapman Rice University Theory and Simulation of Complex Fluids in the Interfacial Region

21 PRINCIPAL INVESTIGATOR INSTITUTION TITLE OF RESEARCH

Xiaomin Chen The University of Texas Exploring the Chemical Nature of the STAT-Dependent M. D. Anderson Cancer Center Transcription Synergism and Negative Regulation of Jak-STAT Signaling Pathway by X-ray Crystallography Zhijian J. Chen The University of Texas Regulation of the IkB Kinase Complex by TRAF6 Southwestern Medical Center at Dallas Kwan Hon Cheng Texas Tech University Spectroscopic Investigation of Superlattice Domains in Lyotropic Liquid Crystals Russell R. Chianelli The University of Texas at El Paso Amorphous and Highly Folded Layered Transition Metal Chalcogenide (LTMC) and Related Materials Produced Through Low Temperature Synthetic Routes Wah Chiu Baylor College of Medicine Structural Studies of an Enveloped Virus Yuh Min Chook The University of Texas Structural Basis of Nucleoporin-Mediated Karyopherin Southwestern Medical Center at Dallas β2-Substrate Dissociation David T. Chuang The University of Texas Mechanism of Chaperone-Mediated Protein Folding Southwestern Medical Center at Dallas Oliver M. R. Chyan University of North Texas Metal Deposition on Early Group 14 Elements: Diamond, Silicon and Germanium Abraham Clearfield Texas A&M University Metal Phosphonates as Crystal Engineered Solids Cecilia Clementi Rice University Mapping the Free Energy Landscape of Proteins by Combining Theory and Experiment Melanie H. Cobb The University of Texas Regulatory and Catalytic Properties of ERK’s Southwestern Medical Center at Dallas David L. Cocke Lamar University Surface Chemistry of Amorphous Metals Jeffery L. Coffer Texas Christian University Structural and Electronic Confinement in Doped and Undoped Group IV Nanowires Vicki L. Colvin Rice University Protein Crystals as Templates for Nanostructured Materials David R. Corey The University of Texas Enhanced Recognition of DNA and RNA Chemically Southwestern Medical Center at Dallas Modified Oligonucleotide F. Albert Cotton Texas A&M University Di- and Poly Nuclear Compounds Alan H. Cowley The University of Texas at Austin The Structures and Chemical Behavior of Novel Nonmetal Compounds Paul S. Cremer Texas A&M University Investigating Water Structure at Charged Interfaces Richard M. Crooks Texas A&M University Intradendrimer Chemical Reactions Robert F. Curl Rice University Studies in Laser Spectroscopy Roman S. Czernuszewicz University of Houston Vibrational Studies on Drug-Nucleic Acid Interactions Kevin N. Dalby The University of Texas at Austin Mechanism and Specificity of MAP Kinases Donald J. Darensbourg Texas A&M University Mixed Metal Cyanide Derivatives and Their Role in Catalysis Marcetta Y. Darensbourg Texas A&M University Bioorganometallic Chemistry: Binuclear Complex Models of the ACS/CODH Active Site Olafs Daugulis University of Houston Carbon-Hydrogen Bond Activation and Functionalization Using Transition Metal Complexes: A Reverse Heck Reaction Amy L. Davidson Baylor College of Medicine Allosteric Interactions in Membrane Proteins Jef K. De Brabander The University of Texas Evaluation of Cyclohexadienone Photochemistry Southwestern Medical Center at Dallas for the Assembly of Macrocyclic Natural Product-Like Compounds Alex L. de Lozanne The University of Texas at Austin Single-Molecule Electron Spin Resonance Spectroscopy Johann Deisenhofer The University of Texas Structural Studies on DNA Photolyase and Cryptochromes Southwestern Medical Center at Dallas Jeff DeJong The University of Texas at Dallas Biochemical Mechanisms of Germ-Line Gene Regulation George N. DeMartino The University of Texas Use of Double-Stranded RNA Interference to Determine Southwestern Medical Center at Dallas Function and Regulation of 26S Proteasome

22 PRINCIPAL INVESTIGATOR INSTITUTION TITLE OF RESEARCH

Sharon Roth Dent The University of Texas Functions and Regulation of Histone Modifying Enzymes M. D. Anderson Cancer Center Victoria J. DeRose Texas A&M University Metal Peptide Complexes as Models for Protein Active Sites H. V. Rasika Dias The University of Texas at Arlington Fluorinated Poly(pyrazolyl)borates Gregg R. Dieckmann The University of Texas at Dallas DNA Modification and Regulation: Design of Metal- Binding Proteins with Demethylase Activity Todd Ditmire The University of Texas at Austin Ultrafast Probing of Multi-Electron Ionization and Coulomb Explosion in Rare Gas Clusters Michael C. Downer The University of Texas at Austin Femtosecond Nonlinear Spectroscopy of Column IV Interface Chemistry Kim R. Dunbar Texas A&M University Nanomagnets Based on Molecules: Investigation of the Effect of Magnetic Anisotropy on the Properties of Large Moment Molecules F. Barry Dunning Rice University Studies Involving Molecules in High-Rydberg States David C. Easter Texas State University-San Marcos Properties and Dynamics of Neutral Molecular Solvation Clusters John G. Ekerdt The University of Texas at Austin Chemistry on Semiconductor and Dielectric Surfaces Andrew D. Ellington The University of Texas at Austin Chemical Augmentation of Nucleic Acid Catalysts Ronald L. Elsenbaumer The University of Texas at Arlington Designed Intermolecular Orbital Overlap in Supra- molecular Architectures Derived from Linear Conjugated Molecules Self-Assembled by Metal Ion Complexation Paul S. Engel Rice University Strongly Near UV and Visible Light Absorbing Bifunctional Azoalkanes James L. Erskine The University of Texas at Austin Structure and Dynamics of Clean and Hydrogen Terminated Metal Surfaces Stefan K. Estreicher Texas Tech University Dynamics of Defects in Silicon John P. Fackler, Jr. Texas A&M University Complexes of Group 11 Elements, Especially Gold – Electronic and Molecular Structures and Reactivities Walter L. Fast The University of Texas at Austin Enzymic Hydrolysis of Substituted Guanidines Debra A. Feakes Texas State University-San Marcos Investigation of the Reaction of Nucleophiles with the 2- Isomers of [B20H18] Manfred Fink The University of Texas at Austin Chemical Reactions of Coherent, Ultracold Molecules in a Discrete Quantum State Paul F. Fitzpatrick Texas A&M University Mechanisms of Oxidative Enzymes Ernst-Ludwig Florin The University of Texas at Austin Chemical Analysis of Nanometer Scaled Environments in the Plasma Membrane of Living Cells Robert A. Flowers II Texas Tech University Sm(II) Mediated Asymmetric Reductions and Bond- Forming Reactions George E. Fox University of Houston RNA Structure Studies Robert O. Fox The University of Texas The Chemical Basis of Protein Structure Medical Branch at Galveston Wolfgang Frey The University of Texas at Austin Non-Spherical Metal Nanoparticles for a Sensor Platform Errol C. Friedberg The University of Texas Structure Determination of the DNA Nucleotide Excision Southwestern Medical Center at Dallas Repair Enzyme UvrA from E. coli

Edward S. Fry Texas A&M University Studies of Hg and Hg2 with Objectives from Fundamental to Applied John L. Fry The University of Texas at Arlington Theoretical Studies of the Condensed State of Matter François P. Gabbai Texas A&M University Boron-Boron One Electron σ-Bonds Carl A. Gagliardi Texas A&M University Nuclear Astrophysics Experiments with MARS Xiaolian Gao University of Houston Parallel Synthesis Using Photogenerated Reagents Kevin H. Gardner The University of Texas Integrating Photochemistry and Solution NMR: Tools for Southwestern Medical Center at Dallas Studying Protein Conformational Changes and Interactions

23 PRINCIPAL INVESTIGATOR INSTITUTION TITLE OF RESEARCH

Charles M. Garner Baylor University C2-Asymmetric Pyrazole Ligands for Metal-Mediated Catalysis William T. Garrard The University of Texas Chemical Cross-Linking for Identification of Nuclear Actin Southwestern Medical Center at Dallas Binding Proteins Gregory I. Gellene Texas Tech University Fundamental Studies of a New Mechanism for Kinetic Isotope Effects David P. Giedroc Texas A&M University Coordination Chemistry of Zn(II) Complexes in Nucleic Acid Binding Proteins John C. Gilbert The University of Texas at Austin Study of Isomeric Cycloalkylidenecarbenes and Cycloalkynes Marie-Alda Gilles-Gonzalez The University of Texas Structures of Heme-Binding PAS-Domain Proteins Southwestern Medical Center at Dallas Frederick S. Gimble Texas A&M University Rational and Combinatorial Approaches to Expanding System Health Science Center DNA Endonuclease Function Stephen L. Gipson Baylor University Redox-Initiated Reactivity of Organometallic Compounds Elizabeth J. Goldsmith The University of Texas The Serpin Inhibitory Mechanism Southwestern Medical Center at Dallas Richard H. Gomer Rice University The Interaction of a Chlorinated Hexaphenone with a Signaling Polypeptide John B. Goodenough The University of Texas at Austin Influence of Counter Cation in Mixed-Metal Oxides Joel M. Goodman The University of Texas Beyond Binary Interactions: Membrane Complexes in Southwestern Medical Center at Dallas Peroxisomal Assembly David G. Gorenstein The University of Texas NMR, Structure and Design of Duplex Oligonucleotide Medical Branch at Galveston Analogues Targeted to HIV Reverse Transcriptase David E. Graham The University of Texas at Austin Biosynthesis of the Methanogenic Coenzyme B William R. M. Graham Texas Christian University Vibrational Spectra and Structures of Small Molecular Clusters Donald M. Gray The University of Texas at Dallas CD of DNA Structures Having High Affinity for Ff Gene 5 Protein Peter F. Green The University of Texas at Austin Role of Long and Short-Range Intermolecular Interactions on Pattern Formation in Thin Films Paolo Grigolini University of North Texas Spectroscopy of Single Molecules and Single Quantum Dots: A Theoretical Approach Nick V. Grishin The University of Texas Crystallographic Analysis of Human and E. coli NMN Southwestern Medical Center at Dallas Adenylyltransferases Arnold M. Guloy University of Houston Synthesis and Properties of Functional Low-Dimensional Organic-Based Metal Halides Robin R. Gutell The University of Texas at Austin Computational Identification of Unique RNA Structural Motifs Frank S. Guziec, Jr. Southwestern University Synthetic Applications of Functionalizing Deamination Reactions Norman Hackerman Rice University Electrochemical Studies of Processes at Electrode/Electrolyte Interface Marvin L. Hackert The University of Texas at Austin X-ray Structural Analysis of Proteins Jason H. Hafner Rice University Chemical Kinetics of Single-Walled Carbon Nanotube Synthesis Naomi J. Halas Rice University Chemical and Energy Transfer Processes at Nanoparticle Surfaces P. Shiv Halasyamani University of Houston Advanced Second-Harmonic Generating Materials Michael B. Hall Texas A&M University Molecular Orbital Calculations on Chemical Reactions of Transition Metals James R. Halpert The University of Texas Cooperativity of Cytochrome P450: How is it Different Medical Branch at Galveston from Other Allosteric Enzymes? Stephen R. Hammes The University of Texas Progesterone Metabolism in the Oocyte Southwestern Medical Center at Dallas

24 PRINCIPAL INVESTIGATOR INSTITUTION TITLE OF RESEARCH

Hyunsoo Han The University of Texas at San Antonio Chiral Ultra-Nucleophilic Catalysts Tracy A. Hanna Texas Christian University Bismuth/Molybdenum Alkoxides: Models for the SOHIO Catalyst Boyd A. Hardesty The University of Texas at Austin Cotranslational Fluorescence Labeling of Proteins John C. Hardy Texas A&M University Nuclear Decay Studies J. Wade Harper Baylor College of Medicine Mechanism and Activation of the SCF Ubiquitin Ligase Patrick G. Harran The University of Texas Methods to Initiate Synthetic Restructuring of Peptides Southwestern Medical Center at Dallas Rasika M. Harshey The University of Texas at Austin Probing Target DNA Conformation within Transpososomes Using a Chemical Nuclease Peter J. Hart The University of Texas Biophysical and Structural Analyses of Phytocyanins: Health Science Center at San Antonio Plant-Specific Mononuclear Blue Copper Proteins Jeffrey D. Hartgerink Rice University Synthesis of Nanostructured Organic Materials via Self-Assembly A. D. J. Haymet University of Houston Chemical Reactions at the Ice/Water Interface Allan D. Headley Texas Tech University Chiral Ionic Liquids, A New Class of Solvents for Asymmetric Reactions Daniel J. Heinzen The University of Texas at Austin Studies of Ultracold Molecular Gases Adam Heller The University of Texas at Austin Synthesis and Characterization of Redox Polymers for Biofuel Cell Electrocatalysts Mark Henkemeyer The University of Texas Bidirectional Tyrosine Kinase Signal Transduction Southwestern Medical Center at Dallas David L. Herrin The University of Texas at Austin Catalytic RNAs and Site-Specific Endonucleases Derived from Group I Introns Vincent J. Hilser The University of Texas Chemical Basis for Dynamic Contributions to Molecular Medical Branch at Galveston Recognition Andrew P. Hinck The University of Texas Ligand-Receptor Interactions in the TGF-beta Superfamily Health Science Center at San Antonio David M. Hoffman University of Houston Synthesis of Molecular Precursors and the Preparation of Metal Silicate Films David W. Hoffman The University of Texas at Austin Investigation of the Protein Synthesis Apparatus Using NMR Spectroscopy Sandra L. Hofmann The University of Texas Palmitoyl-Protein Thioesterases Southwestern Medical Center at Dallas James A. Holcombe The University of Texas at Austin Metal Ion Templating and Controlled Crystal Growth Using Short Chain Polymers Paul M. Horowitz The University of Texas The Role of Flexibility in Folding and Stability of the Health Science Center at San Antonio Enzyme Rhodanese Huey W. Huang Rice University Peptide-Membrane Interactions: Phase Transitions and Supramolecular Assemblies Dale A. Huckaby Texas Christian University Theoretical Chemistry Timothy Hughbanks Texas A&M University Zirconium Clusters as Building Blocks for Aggregates and Solids Randall G. Hulet Rice University Bose-Einstein Condensation of Molecules Gyeong S. Hwang The University of Texas at Austin Self Assembly of Molecular Nanostructures on Group IV Semiconductors (Si, Ge, C): With Applications to Future Molecular Devices Alex Ignatiev University of Houston The Chemical Interaction of Adsorbed Species with Surfaces Brent L. Iverson The University of Texas at Austin Artificial Spider Silk Based on Abiotic Folding Polymer Chains Allan J. Jacobson University of Houston Hydrogen Insertion and Diffusion in Mixed Electronic Ionic Conducting Oxides Makkuni Jayaram The University of Texas at Austin Continued Investigations on the Active Site Flexibility and Versatility of the Flp Recombinase

25 PRINCIPAL INVESTIGATOR INSTITUTION TITLE OF RESEARCH

Jean X. Jiang The University of Texas Structural Analysis of Amino Acid Transporters by Health Science Center at San Antonio Electron Cryomicroscopy Youxing Jiang The University of Texas Structural and Functional Studies of the MthK Potassium Southwestern Medical Center at Dallas Channel Keith P. Johnston The University of Texas at Austin Stabilization of Solid-Supercritical Fluid Interfaces Richard A. Jones The University of Texas at Austin Synthesis, Structure and Bonding in Organometallic Chemistry Karl M. Kadish University of Houston Electrochemistry and Spectroelectrochemistry of Compounds with Multiple Redox Centers Robert R. Kane Baylor University DNA Enzymes that Require Synthetic Cofactors Jeffry A. Kelber University of North Texas Fundamental Surface Properties of Ultrathin Oxide Films in Aqueous and UHV Environments Sean M. Kerwin The University of Texas at Austin Molecular Recognition and DNA Damage Thomas C. Killian Rice University Ultracold Collisions in Laser-Cooled Atomic Strontium James L. Kinsey Rice University Photoemission by Photodissociating Molecules Kevin K. Klausmeyer Baylor University New Entries into Metallodendrimer and Organometallic Polymer Chemistry Using Metal Alkoxides Douglas J. Klein Texas A&M University at Galveston Molecular Structure Models Leonard Kleinman The University of Texas at Austin Semiconductor Surfaces and Molecular Adsorption Steven A. Kliewer The University of Texas Bile Acid Receptor Regulation of Fibroblast Growth Southwestern Medical Center at Dallas Factor-15 David B. Knaff Texas Tech University Mechanisms of Protein Disulfide/Dithiol Redox Reactions Che-Ming Ko Texas A&M University Theoretical Studies of Heavy Ion Collisions Jay K. Kochi University of Houston Donor-Acceptor Systems in the Organic Solid State as Nonlinear Optical Materials Thomas J. Kodadek The University of Texas The Molecular Basis of Peptide-Peptide Interactions Southwestern Medical Center at Dallas Anatoly B. Kolomeisky Rice University Theoretical Investigation of Polymer Translocation Phenomena Junichiro Kono Rice University Infrared Dynamics of Carbon Nanotubes Brian A. Korgel The University of Texas at Austin Semiconductor Nanowire Synthesis in High Pressure High Temperature Solvents Donald J. Kouri University of Houston Chemical Dynamics and the Inverse Scattering Problem Ali R. Koymen The University of Texas at Arlington Exchange Bias in Rare Earth-Transition Metal Nanolayers Helmut Krämer The University of Texas Protein Lipid Interactions in Endocytosis Southwestern Medical Center at Dallas Kurt L. Krause University of Houston Structural Studies on the Chemical Mechanism of Proteins Michael J. Krische The University of Texas at Austin Catalytic Reductive C-C Bond Formation via Enone Hydrogenation Robert M. Krug The University of Texas at Austin The Influenza Virus RNA Polymerase: Target for Antiviral Drugs Jeannette Kunz Baylor College of Medicine Structural Basis of PIP Kinase Signaling Specificity and Regulation Mitzi I. Kuroda Baylor College of Medicine Chromosome-Specific Assembly of a Histone Acetyltransferase Complex Jaan Laane Texas A&M University Molecular Conformations and Vibrational Potential Energy Surfaces Richard J. Lagow The University of Texas at Austin Synthesis of Novel Fluorinated Dendrimers for Self- Assembling Micelles and Encapsulation of Small Molecules J. J. Lagowski The University of Texas at Austin On the Synthesis and Characterization of Metallo-Fullerenes David L. Lambert The University of Texas at Austin The Chemical Composition of Stars Michael Lattman Southern Methodist University Calixarenes: New Structures and Reactions

26 PRINCIPAL INVESTIGATOR INSTITUTION TITLE OF RESEARCH

James C. Lee The University of Texas Structural Coupling in Allosteric Regulation Medical Branch at Galveston T. Randall Lee University of Houston Structure and Properties of Self-Assembled Monolayers Derived from Dithiocarboxylate Salts Glen B. Legge University of Houston NMR Methods for Dynamics and Structure Determination of Protein-Ligand Complexes Mark A. Lehrman The University of Texas Mechanism of Transverse Reorientation (Flipping) of Southwestern Medical Center at Dallas Dolichol Pyrophosphate-Linked Oligosaccharides Guigen Li Texas Tech University New Electrophilic Amination Reactions and Their Asymmetric Versions Renhao Li The University of Texas Polar Residues in the Membrane Bilayer Health Science Center at Houston Wen-hong Li The University of Texas Develop Caged Fluorophores for Biological Imaging Southwestern Medical Center at Dallas Applications Roger L. Lichti Texas Tech University Muonium Defect Chemistry in Wurtzite Compounds Paul A. Lindahl Texas A&M University Crystallization of Acetyl-Coenzyme A Synthase Hung-wen Liu The University of Texas at Austin Mechanistic Studies of Novel Enzymes Yi Liu The University of Texas Biochemical and Structural Studies of Blue Light Southwestern Medical Center at Dallas Photoreceptors Andy C. LiWang Texas A&M University Quantitation of Hydrogen Bonds in Ribonuclease Sa Patricia J. LiWang Texas A&M University The Dimerization of MIP-1β in Response to the Binding of Glycosaminoglycans Carl J. Lovely The University of Texas at Arlington Synthetic Approaches to Marine Alkaloids Robert R. Lucchese Texas A&M University Nuclear Motion in the Photoionization of Polyatomic Molecules Richard F. Luduena The University of Texas The Cysteine Residues of Tubulin Isotypes Health Science Center at San Antonio Dan Luss University of Houston Temperature Patterns Formation and Dynamics in Shallow Packed Bed Reactors Jianpeng Ma Baylor College of Medicine The Catalytic Mechanisms of β-Lactamases Tom J. Mabry The University of Texas at Austin The Chemistry and Biochemistry of Natural Products Allan H. MacDonald The University of Texas at Austin Quantum Properties of Transition Metal Cluster Molecular Magnets Frederick M. MacDonnell The University of Texas at Arlington Exploring Chirality as a Tool for the Construction of Supramolecular Systems Kevin R. MacKenzie Rice University Physical Chemistry of Protein-Protein Interactions in Membrane Environments Philip D. Magnus The University of Texas at Austin Manganese (III) Complexes in Organic Synthesis John A. Maguire Southern Methodist University Study of the Syntheses, Structures, and Reactivities of Metallacarboranes with Constrained Geometries Dmitrii E. Makarov The University of Texas at Austin Theory and Simulation of the Dynamics of Individual Molecules David J. Mangelsdorf The University of Texas Ligand Binding Properties of Orphan Nuclear Receptors Southwestern Medical Center at Dallas in Caenorhabditis elegans Arumugam Manthiram The University of Texas at Austin Synthesis and Properties of Transition Metal Oxides with Unusual Valence States Carlos E. Manzanares Baylor University Laser Spectroscopy of Molecules and van der Waals Complexes at Low Temperatures Alan P. Marchand University of North Texas Design and Synthesis of Cage-Annulated Optically Active Host Molecules for Use in Enantiomeric Recognition, Separation and Transport Edward M. Marcotte The University of Texas at Austin Mass Spectrometric/NMR Detection of Proteome- and Metabolome-Wide Expression Patterns John L. Margrave Rice University Chemistry Under Extreme Conditions

27 PRINCIPAL INVESTIGATOR INSTITUTION TITLE OF RESEARCH

John T. Markert The University of Texas at Austin Synthesis, Magnetochemistry and Superconductivity of Metals and Oxides Paul Marshall University of North Texas The Temperature Dependence of Radical Addition Reactions Arthur E. Martell Texas A&M University Metal Chelate Compounds in Homogeneous Catalysis Stephen F. Martin The University of Texas at Austin Synthesis of Biologically Relevant Molecules Luis Martinez The University of Texas at El Paso Transition Metal-Mediated Cyclizations on Solid Support Susan A. Martinis University of Houston Molecular Characterization of an RNA Co-factor for Enzyme Catalysis Dennis S. Marynick The University of Texas at Arlington Application of Density Functional Theory to Fundamental Issues in Biomolecular and Inorganic Systems Bettie Sue Masters The University of Texas Structure-Function Relationships in the FAD- and Health Science Center at San Antonio FMN-Containing Enzymes, NADPH-Cytochrome P450 Reductase and Isoforms of Nitric Oxide Synthase Seiichi P. T. Matsuda Rice University Terpene Biosynthesis Kathleen S. Matthews Rice University Genetic Regulatory Proteins: Structure-Function Relationships Floyd D. McDaniel University of North Texas Impurity Characterization in Compound Semiconductor Materials John T. McDevitt The University of Texas at Austin Electrochemical Modification and Study of Superconductor Structures H. Keith McDowell The University of Texas at Arlington Molecular-Level Conductivity: Stochastic Electron Transfer Larry V. McIntire Rice University Biochemical Mechanisms of Stress-Intracellular Metabolism Coupling Rex B. McLellan Rice University Thermodynamics and Kinetics of Solids James A. McNew Rice University Isolation and Identification of Proteins Involved in Cell-to-Cell Membrane Fusion Michael J. McPhaul The University of Texas Determinants of Androgen Receptor Function Southwestern Medical Center at Dallas Michael L. Metzker Baylor College of Medicine Characterization of HIV-1 Drug Resistance Using Novel 3’-Unsaturated Nucleotides Stephen A. Miller Texas A&M University New Polyolefin Architectures from Next-Generation Transition Metal Polymerization Catalysts

John H. Miller, Jr. University of Houston Novel Applications of High-Tc Superconducting Sensors Nancy S. Mills Trinity University Measures of Antiaromaticity in Indenyl and Fluorenyl Systems David E. Minter Texas Christian University New Synthetic Methodology for the Construction of Crinane and Galanthan Ring Systems Daniel Mittleman Rice University The Size-Dependent Dynamical Properties of Confined Water Jean-Luc G. Montchamp Texas Christian University Charged Hydrolytically Stable RNA Analogues as Potential Antisense Oligonucleotides Jorge A. Morales Texas Tech University Quantum/Classical Charge Transfer Models for Biochemical Simulations: A Valence-Bond Approach Charles B. Mullins The University of Texas at Austin Effect of Vibrational Energy on the Activated Dissociative Chemisorption of Molecules with Low Translational Energy Ferid Murad The University of Texas Nitrotyrosine Formation and Function Health Science Center at Houston Ghezai T. Musie The University of Texas at San Antonio Towards the Understanding of Xylose/Glucose Isomerase’s (XGI) Active Site Inga H. Musselman The University of Texas at Dallas Chemical Contrast in STM Images of Materials for Molecular Scale Sensors and Device Structures Siegfried Musser Texas A&M University Single Molecule Fluorescence Measurements of Tat Protein System Health Science Center Transport

28 PRINCIPAL INVESTIGATOR INSTITUTION TITLE OF RESEARCH

Barry T. Nall The University of Texas Effect of Pre-Existing Structure on Cytochrome c Health Science Center at San Antonio Folding Rates Douglas Natelson Rice University Transport Spectroscopy of Molecular Electronic Systems Joseph B. Natowitz Texas A&M University Nuclear Reaction Studies Donald G. Naugle Texas A&M University The Influence of Reduced Dimensionality, Disorder, and Surfaces on the Properties of Solids Javier Navarro The University of Texas Mechanism of Crystallization of Macromolecules in Medical Branch at Galveston Three-Dimensional Lipid Bilayers Robert H. Neilson Texas Christian University New Phosphazene-Based Hybrid Polymers W. David Nes Texas Tech University Studies on Stereochemical Mechanisms in Sterol Synthesis Edward P. Nikonowicz Rice University Synthesis and NMR Spectroscopic Applications of 2’-Modified RNA Analogues Qian Niu The University of Texas at Austin Controlled Microscopic Processes Peter J. A. Nordlander Rice University Theoretical Investigation of Chemical Properties of Nanosystems Michael V. Norgard The University of Texas Crystallographic Analysis of Treponema pallidum Southwestern Medical Center at Dallas Lipoproteins Simon W. North Texas A&M University Fragment Correlations as a Probe of Unimolecular Reaction Dynamics Catherine A. O’Brian The University of Texas The Active Site Chemistry of Protein Kinase C – M. D. Anderson Cancer Center Mechanistic Studies John S. Olson Rice University Chemical Mechanisms of Ligand Binding to Heme Proteins Bert W. O’Malley Baylor College of Medicine Cell-Free Studies on the Biochemical Mechanism of Nuclear Receptor Coactivator Regulation of Chromatin Transcription Mohammad A. Omary University of North Texas Luminescent Metal-Metal Bonded Exciplexes of Closed-Shell Coordination Compounds Kim Orth The University of Texas Enzymatic and Structural Characterization of the Southwestern Medical Center at Dallas Pathogenic Effector, XopD, from Xanthomonas campestris C. Nick Pace Texas A&M University Energetics and Mechanism of Globular Protein Folding System Health Science Center Brian L. Pagenkopf The University of Texas at Austin Optically Active Cyclopentadienyl Complexes with Pendant Donors Graham Palmer Rice University Electron Transfer Reactions in Biological Systems Keith H. Pannell The University of Texas at El Paso Group 14 Transition Metal Chemistry Paul Pantano The University of Texas at Dallas Novel Protein Surface Chemistries Paul W. Paré Texas Tech University Flavonoid Substituents that Direct Free-Radical Scavenging Ronald J. Parry Rice University Studies of Natural Product Research Gerhard G. Paulus Texas A&M University Few-Cycle Femtosecond Laser System with Stabilized “Absolute” Phase Steen E. Pedersen Baylor College of Medicine Local Allosteric Effects in Binding to the Acetylcholine Receptor Pawel A. Penczek The University of Texas Posttranslational Protein Transport Through the ER Health Science Center at Houston Membrane: Structure of the Protein-Conducting Channel from Yeast by Cryo-Electron Microscopy Philip S. Perlman The University of Texas Tertiary Structures in Group II Intron Ribozymes Southwestern Medical Center at Dallas B. Montgomery Pettitt University of Houston Structural Theory of Aqueous Electrolyte Solutions Margaret A. Phillips The University of Texas Control of Substrate Specificity in Eukaryotic Ornithine Southwestern Medical Center at Dallas Decarboxylase Kevin G. Pinney Baylor University Molecular Recognition of Tubulin by New Classes of Affinity Probes and Polymerization Inhibitors Lionel W. Poirier Texas Tech University New Methodologies for Accurate Quantum Calculations of the Dynamics of Atomic Nuclei 29 PRINCIPAL INVESTIGATOR INSTITUTION TITLE OF RESEARCH

Martin Pomerantz The University of Texas at Arlington Studies of Bithiophenes B. V. Venkataram Prasad Baylor College of Medicine X-ray Crystallographic Studies on Viruses and Viral Proteins Waldemar Priebe The University of Texas B-DNA and Z-DNA Selective Groove Binding Intercalator M. D. Anderson Cancer Center Christopher J. Pursell Trinity University Chemistry on Hydrogen-Bonding Molecular Solids John A. Putkey The University of Texas Structure of a Novel Calcium-Binding Domain Health Science Center at Houston Florante A. Quiocho Baylor College of Medicine Structural Basis of Protein-Ligand Recognitions Edward L. Quitevis Texas Tech University Low-Frequency Dynamics of Room Temperature Ionic Liquids Studied by Optical Kerr Effect Spectroscopy J. Wayne Rabalais University of Houston Mechanism of Ion Induced Electron Emission from Surfaces Mark G. Raizen The University of Texas at Austin Quantum Control of Atomic and Molecular Motion C. S. Raman The University of Texas Structural Basis for Inhibitor Recognition and Catalysis in Health Science Center at Houston Nitric Oxide Synthases Rama Ranganathan The University of Texas The Structural Basis for Allosteric Communication Southwestern Medical Center at Dallas in Proteins Frank M. Raushel Texas A&M University Enzyme Reaction Mechanisms Asok K. Ray The University of Texas at Arlington Density Functional Study of the Surface Electronic Behavior of Actinide Metals Linda E. Reichl The University of Texas at Austin Transport and Decay Processes at Atomic and Nanometer Length Scales Gregory D. Reinhart Texas A&M University Identification and Characterization of Transient Protein-Protein Interactions Michael G. Richmond University of North Texas Synthesis and Reactivity Studies of Cluster Compounds Alexander J. Rimberg Rice University Real-Time Study of Electron Motion and Reaction Rates in Artificial Atoms and Molecules C. Magnus L. Rittby Texas Christian University Theoretical Investigation of Novel Carbon, Silicon, and Germanium Clusters Jose Rizo-Rey The University of Texas Mechanism of Ca2+-Dependent Neurotransmitter Release Southwestern Medical Center at Dallas Marc A. Robert Rice University Fundamental Properties of Two- and Three-Dimensional Fluids, Magnetic and Ferroelectric Materials Jon D. Robertus The University of Texas at Austin Chemistry of Folate-Dependent Dehydrogenation Neal C. Robinson The University of Texas Phospholipid Stabilization of Subunit Interactions within Health Science Center at San Antonio Bacterial Oxidases Daniel Romo Texas A&M University Preparation of Chiral Synthons for Natural Product Synthesis Based on the 2-Oxetone (β-Lactone) Framework Michael K. Rosen The University of Texas Structure-Based Design of Fluorescent Sensors of Cdc42 Southwestern Medical Center at Dallas Signaling Elliott M. Ross The University of Texas Mechanism of the GAP-Stimulated GTPase Reaction for Southwestern Medical Center at Dallas Trimeric G Proteins Joseph H. Ross, Jr. Texas A&M University Magnetism in Silicon Clathrates: New Nanostructured Magnetic Materials D. Max Roundhill Texas Tech University Synthesis of a Computational Approach to Host-Guest Chemistry Frederick B. Rudolph Rice University Catalytic Mechanism of Butyrate Kinases David H. Russell Texas A&M University Studies of the Structure of Gas-Phase Peptide Ions David W. Russell The University of Texas Oxysterol Metabolizing Enzymes Southwestern Medical Center at Dallas Rick Russell The University of Texas at Austin Single Molecule Dissection of a Protein-Mediated Structural Change of RNA Raymond E. Schaak Texas A&M University Synthesis of Exotic Solid State Materials with Nanoscale Geometric Confinement 30 PRINCIPAL INVESTIGATOR INSTITUTION TITLE OF RESEARCH

Zoltan A. Schelly The University of Texas at Arlington Relaxation Kinetics of Organized Assemblies Thomas G. Schmalz Texas A&M University at Galveston An Improved Valence Bond Model Christine E. Schmidt The University of Texas at Austin Synthesis of a Biodegradable, Electrically Conducting Polymer J. Martin Scholtz Texas A&M University Forces Involved in Protein Folding and Stability System Health Science Center Hans A. Schuessler Texas A&M University Preparation and Optical Studies of Ultracold Molecular Ions Martin Schwartz University of North Texas The Electronic Structure and Properties of Conducting Polymers Emile A. Schweikert Texas A&M University Studies in Surface Ionization Marlan O. Scully Texas A&M University Coherence and Decoherence in Atomic Molecular and Solid State Systems: Continuations and Extensions William A. Seitz Texas A&M University at Galveston Complexity Theory and a New Class of Ionic Liquids Philip Serwer The University of Texas Structural Chemistry of Viruses Health Science Center at San Antonio Jonathan L. Sessler The University of Texas at Austin Molecular Recognition via Base-Pairing Yousif Shamoo Rice University Biophysical Studies on the Stereochemical Basis for RNA Recognition Jason B. Shear The University of Texas at Austin Rapid Electrophoretic Characterization of Transient Species in Solution-Phase Mixtures A. Dean Sherry The University of Texas at Dallas Lanthanide-DOTA-Tetraamide Complexes as Biological Sensors Henry J. Shine Texas Tech University Radical and Cation Radical Reactions Qimiao Si Rice University Theoretical Studies of Electronic Transport in the Carbon Nanotubes John W. Sibert The University of Texas at Dallas Ortho- and Meta-“Wurster’s Crowns”: Synthesis and Study of Phenylenediamine-Based Redox-Active Macrocycles Eric E. Simanek Texas A&M University Molecular Recognition in Clays Daniel A. Singleton Texas A&M University Dynamic Effects on Ordinary Organic Reactions in Solution Richard E. Smalley Rice University Fullerene Nanostructures Alexei V. Sokolov Texas A&M University Femtosecond Light Source Synchronized with Molecular Motion: A Unique Tool for Studying Ultrafast Molecular Dynamics David Y. Son Southern Methodist University New Multi-Purpose Reagents for the Synthesis of Conjugated Polymers and Macrocycles Zhou Songyang Baylor College of Medicine Combinatorial Analysis of Protein Kinase Specificities and Phosphorylation Dependent Interactions Manuel P. Soriaga Texas A&M University Surface Organometallic Chemistry of Noble-Metal Electrodes Rui J. Sousa The University of Texas Conformational Dynamics of T7 RNA Polymerase Health Science Center at San Antonio Transcription Stephen R. Sprang The University of Texas Novel Regulators of G Protein-Catalyzed GTP Hydrolysis Southwestern Medical Center at Dallas John F. Stanton The University of Texas at Austin Studies in Quantum Chemistry Christos Stathopoulos University of Houston Post-Translational Chemical Modifications and Structure of a Secreted Polypeptide Ronald F. Stebbings Rice University Experimental Studies of Electronic and Ionic Collisions Hugo Steinfink The University of Texas at Austin The Crystal Chemistry and Physical Properties of Anion Transport Materials Paul C. Sternweis The University of Texas Phosphatidylinositols and Regulation of Signaling Enzymes Southwestern Medical Center at Dallas

31 PRINCIPAL INVESTIGATOR INSTITUTION TITLE OF RESEARCH

Scott W. Stevens The University of Texas at Austin Structure of the Proteins at the Catalytic Center of the Human Spliceosome Keith J. Stevenson The University of Texas at Austin Fundamental Investigations of Ion/Charge Transfer Reactivity in Mesoscopic Materials F. Gordon A. Stone Baylor University Synthesis, Structure and Reactivity of Complexes with Metal-Metal Bonds Wu-Pei Su University of Houston A Real Space Approach to the X-ray Phase Problem Gary A. Sulikowski Texas A&M University Total Synthesis of Bioactive Natural and Unnatural Products Harry L. Swinney The University of Texas at Austin Frequency Locking Tongues in Oscillatory and Excitable Reaction-Diffusion Systems Yizhi Jane Tao Rice University Structure and Catalytic Mechanism of RNA Polymerase from Birnaviruses Winfried Teizer Texas A&M University Enhanced Anisotropy of Molecular Nanomagnets Philip J. Thomas The University of Texas Mechanistic Studies of an ATP-Dependent Chloride Southwestern Medical Center at Dallas Channel Ruthanne D. Thomas University of North Texas Organolithium Clusters Randolph P. Thummel University of Houston Ligands Containing Pyridine and Pyrrole Chin-Sen Ting University of Houston Study of Superconductivity Properties in Copper Oxide Based Compounds Frank K. Tittel Rice University Precision Trace Gas Monitoring Using Mid-IR Quantum Cascade Lasers James M. Tour Rice University Nanomachines. Synthesis and Testing Francis T. F. Tsai Baylor College of Medicine Chemistry of the Molecular Interactions in Transcriptional Regulation Jerry Tsai Texas A&M University Investigating the Fundamental Chemistry of Folded Proteins Shiao-Chun Tu University of Houston Mechanism of Chemical and Biochemical Redox Systems Motonari Uesugi Baylor College of Medicine Small-Molecule Transcription Factor Michael W. Van Dyke The University of Texas RNA G*G Multiplexes and Their Recognition by Proteins M. D. Anderson Cancer Center David A. Vanden Bout The University of Texas at Austin A Molecular Perspective on Conjugated Polymers: The Effect of Chemical Defects and Molecular Order Steven B. Vik Southern Methodist University Interactions of Membrane Proteins James R. Walker The University of Texas at Austin DnaA Protein – A DNA-Dependent ATP Hydrolase Which Initiates DNA Replication G. King Walters Rice University Dynamics of He+ Ion Neutralization at Insulating and Conducting Surfaces Xiaodong Wang The University of Texas Study the Biochemical Pathways of Apoptosis Southwestern Medical Center at Dallas Zerong Wang University of Houston-Clear Lake Synthesis of Novel Heterocycles from Carbonimidic Dichlorides Coran M. H. Watanabe Texas A&M University Investigation of the Biological Roles of 1,2,4-Trisubstituted and 1,4-Disubstituted Cyclohexadienes Rand L. Watson Texas A&M University Excitation of Atoms and Molecules in Collisions with Fast, Highly-Charged Ions William H. Watson Texas Christian University 2-Amino-1,2,3-triazole and 1,3-dithiole-2-thione Derivatives of C60 Stephen E. Webber The University of Texas at Austin Star/Dendrimer Polymers with a Perylene Diimide Core Steven Weinberg The University of Texas at Austin Investigations in Theoretical Physics

Roy Weinstein University of Houston Improvement of Chemical Pinning Centers in High Tc Superconductor R. Bruce Weisman Rice University Photostudies of Carbon Nanostructures

32 PRINCIPAL INVESTIGATOR INSTITUTION TITLE OF RESEARCH

Alex H. Weiss The University of Texas at Arlington Positron Annihilation Induced Auger Spectroscopy: A New Method for the Chemical Analysis of Surfaces Robert D. Wells Texas A&M University Kinetics and Thermodynamics of GAA•TTC Repeat System Health Science Center Sequences Theodore G. Wensel Baylor College of Medicine Probes of GTP-Binding Proteins Michael A. White The University of Texas Analysis of the Functional Significance of Complex Southwestern Medical Center at Dallas Protein/Protein Interactions Christian P. Whitman The University of Texas at Austin Structure Function Relationships in Enzymes Kenton H. Whitmire Rice University Main Group Element Chemistry William R. Widger University of Houston Characterization of Free Radical Formation by NADH:Ubiquinone Reductase James R. Wild Texas A&M University Incorporating Allostery into the Hierarchy of Regulatory Decision Making Thomas M. Wilkie The University of Texas Satiety Signals Regulating RGS16 in Liver Southwestern Medical Center at Dallas C. Grant Willson The University of Texas at Austin Photobase Generators for Advanced Imaging Applications Richard C. Willson University of Houston Physical Chemistry of Biomolecular Recognition

Lon J. Wilson Rice University Carbon Nanotechnology in Medicine: New Gd@C60 Materials as Contrast Agents for Magnetic Resonance Imaging Patty Wisian Neilson Southern Methodist University Cyclic Alkyl/Aryl Substituted Phosphazenes: Control of Molecular Shape Pernilla Wittung-Stafshede Rice University Role of Cofactors and Assembly in Protein Folding Robert E. Wyatt The University of Texas at Austin Quantum Dynamics with Adaptive Grids Jin Xiong Texas A&M University Biohydrogen Production by Purple Photosynthetic Bacteria Boris I. Yakobson Rice University Science of Nearly-1D Materials: From Nanotubes to Nanowires Zhen Yao The University of Texas at Austin Single Molecule Spectroscopy of Metal Phthalocyanines Danny L. Yeager Texas A&M University Multiconfigurational-Based Green’s Function Approaches for Directly Calculating Inner Valence Principal and Valence Shake-up Ionization Potentials Sherry J. Yennello Texas A&M University Coulomb Contributions to Nuclear Fragmentation Helen L. Yin The University of Texas Differential Targeting of Type II Phosphatidylinositol 4 Southwestern Medical Center at Dallas Kinase α and β to the Golgi and the Plasma Membrane Y. Whitney Yin The University of Texas at Austin Structural Studies on Antiviral Inhibitor Toxicity to Human Mitochondrial DNA Polymerase Ryland F. Young III Texas A&M University Oligopeptides for Lytic Antibiotics Dave H. Youngblood Texas A&M University Study of Nuclei at High Excitation Gang Yu The University of Texas Chemical Mechanism of the γ-Secretase Complex Southwestern Medical Center at Dallas Hongtao Yu The University of Texas Structural Analysis of the Mad2-Dependent Spindle Southwestern Medical Center at Dallas Checkpoint Signaling Renyi Zhang Texas A&M University Chemical Kinetics and Mechanism of Hydrocarbon Oxidation Reactions Cong-Gui Zhao The University of Texas at San Antonio Enantioselective Synthesis of 3-Oxazolines via a New Pathway of the Boyer Reaction Yingming Zhao The University of Texas A Novel Method for the Proteomics Analysis of Southwestern Medical Center at Dallas Phosphorylated Proteins and Identification of Kinase Substrates Z. Hong Zhou The University of Texas High-Resolution Structure Determination of Large dsRNA Health Science Center at Houston Viruses by Electron Cryomicroscopy Ralph A. Zingaro Texas A&M University Chemistry of the Metalloids Hui Zou The University of Texas Degradation of Securin Requires Phosphorylation of Its Southwestern Medical Center at Dallas Binding Partner Separase

33 DEPARTMENTAL GRANTS

Abilene Christian University Texas A&M University-Commerce Angelo State University Texas A&M University-Corpus Christi Austin College Texas A&M University-Kingsville Hardin-Simmons University Texas Lutheran University Houston Baptist University Texas Southern University Huston-Tillotson College Texas Wesleyan University Jarvis Christian College Texas Woman’s University Lamar University Trinity University LeTourneau University University of Dallas McMurray University University of Houston-Clear Lake Midwestern State University University of Houston-Downtown Our Lady of the Lake University University of the Incarnate Word Prairie View A&M University University of Mary Hardin-Baylor St. Edward’s University University of St. Thomas Sam Houston State University The University of Texas at Brownsville Schreiner University The University of Texas-Pan American Southwestern University The University of Texas of the Permian Basin Stephen F. Austin State University The University of Texas at San Antonio Sul Ross State University The University of Texas at Tyler Tarleton State University West Texas A&M University Texas A&M International University Wiley College

34 ENDOWED CHAIRS

INSTITUTION CHAIRHOLDER AND CHAIR NAME

Baylor College of Medicine M. Zouhair Atassi Baylor College of Medicine Ronald L. Davis (The R. P. Doherty, Jr.-Welch Chair in Science) Baylor College of Medicine Theodore G. Wensel Baylor University F. Gordon A. Stone Rice University Andrew R. Barron (The Charles W. Duncan, Jr.-Welch Chair in Chemistry) Rice University James L. Kinsey (The D. R. Bullard-Welch Chair in Science) Rice University Gustavo E. Scuseria Texas A&M University F. Albert Cotton (The W. T. Doherty-Welch Chair in Chemistry) Texas A&M University D. Wayne Goodman Texas A&M University James C. Sacchettini (The Roger J. Wolfe-Welch Chair in Science) Texas A&M University A. Ian Scott Texas A&M University System Health Science Center Arthur E. Johnson (The E. L. Wehner-Welch Chair in Chemistry) Texas A&M University System Health Science Center Robert D. Wells Texas Christian University* Texas Tech University William L. Hase Texas Tech University Health Sciences Center Douglas M. Stocco University of Houston Allan J. Jacobson University of Houston Jay K. Kochi University of North Texas Weston Thatcher Borden University of North Texas Health Science Center at Fort Worth* The University of Texas at Arlington* The University of Texas at Austin Paul F. Barbara (The Richard J. V. Johnson-Welch Chair in Chemistry) The University of Texas at Austin Allen J. Bard (The Norman Hackerman-Welch Chair in Chemistry) The University of Texas at Austin Alan H. Cowley The University of Texas at Austin Philip D. Magnus (The R. P. Doherty, Jr.-Welch Chair in Chemistry) The University of Texas at Austin Steven Weinberg (The Jack S. Josey-Welch Chair in Science) The University of Texas at Austin John M. White The University of Texas at Austin Peter J. Rossky (The Marvin K. Collie-Welch Chair in Chemistry) The University of Texas at Austin* The University of Texas at Dallas Ray H. Baughman The University of Texas at Dallas* The University of Texas at El Paso* The University of Texas Health Science Center at Houston John L. Spudich The University of Texas Health Science Center at Houston* The University of Texas Health Science Center at San Antonio Bettie Sue Masters The University of Texas Health Science Center at San Antonio* The University of Texas M. D. Anderson Cancer Center William H. Klein The University of Texas M. D. Anderson Cancer Center* The University of Texas Medical Branch at Galveston James C. Lee The University of Texas Medical Branch at Galveston Scott R. Gilbertson The University of Texas Southwestern Medical Center at Dallas J. Russell Falck The University of Texas Southwestern Medical Center at Dallas Eric N. Olson *Chair not filled

35 INDEPENDENT AUDITORS’ REPORT

Board of Directors The Robert A. Welch Foundation Houston, Texas

We have audited the accompanying statements of financial position of The Robert A. Welch Foundation (the “Foundation”) as of August 31, 2004 and 2003, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the Foundation’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the financial position of the Foundation as of August 31, 2004 and 2003, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

November 1, 2004 Houston, Texas

36 STATEMENTS OF FINANCIAL POSITION AUGUST 31, 2004 AND 2003

ASSETS ______2004 ______2003

CASH AND CASH EQUIVALENTS ...... $ 43,723 $ 53,455

INVESTMENTS:

Marketable securities ...... 562,831,263 528,929,860

...... Other investments ______3,903,989 ______5,180,241

Total investments ...... ______566,735,252 ______534,110,101

RECEIVABLES:

Security transactions ...... 991,253 1,670,126

Interest and dividends ...... 1,729,243 1,855,015

Other ...... ______246,714 ______516,870

Total receivables ...... ______2,967,210 ______4,042,011

OTHER ASSETS ...... ______3,072,806 ______2,712,615

TOTAL ...... 572,818,991 540,918,182 $______$ ______

LIABILITIES AND NET ASSETS

LIABILITIES:

Unpaid grants ...... $ 36,213,200 $ 33,207,100

Federal excise tax payable ...... 3,565,631 3,072,140

Security transactions payable and other liabilities ...... ______179,615 ______2,541,311

Total liabilities ...... ______39,958,446 ______38,820,551

COMMITMENTS AND CONTINGENCIES

NET ASSETS (DEFICIT):

Permanently restricted – Principal Fund ...... 566,353,297 532,717,213

Unrestricted (deficit) – Income Fund ...... (33,982,144) (31,119,582)

Temporarily restricted – Section 10 Fund...... ______489,392 ______500,000

Total net assets ...... ______532,860,545 ______502,097,631

TOTAL ...... 572,818,991 540,918,182 $______$ ______

The accompanying notes are an integral part of these financial statements.

37 37 STATEMENT OF ACTIVITIES YEARS ENDED AUGUST 31, 2004 AND 2003

______2004 Permanently Unrestricted Temporarily Restricted – Deficit – Restricted – Principal Fund Income Fund Section 10 Fund Total ------REVENUES:

Interest ...... $ — $ 6,784,006 $ 68,266 $ 6,852,272

Dividends ...... — 7,343,611 — 7,343,611

Oil and gas royalties and other ...... — 2,057,096 — 2,057,096 ------

Total revenues ...... — 16,184,713 68,266 16,252,979 ------EXPENSES:

Investment advisory and custodial fees ...... — 1,591,288 — 1,591,288

General and administrative ...... — 2,264,784 — 2,264,784 Federal excise tax provision on net investment income — 120,068 — 120,068

Property and production taxes ...... — 155,538 — 155,538

Advisory board fees and expenses ...... — 330,000 — 330,000 ------

Total expenses ...... — 4,461,678 — 4,461,678 ------GRANTS APPROVED – Net (27,668,779) (12,000) (27,680,779) NET REALIZED GAINS ON SALES OF MARKETABLE SECURITIES AND OTHER ASSETS...... 23,889,105 — — 23,889,105

INCREASE (DECREASE) IN UNREALIZED APPRECIATION OF MARKETABLE SECURITIES ...... 24,333,543 — (66,874) 24,266,669

DECREASE IN ESTIMATED FAIR MARKET VALUE OF OTHER INVESTMENTS ...... (1,247,547) — — (1,247,547)

INCREASE IN PREPAID PENSION COST...... — 454,771 454,771

FEDERAL EXCISE TAX PROVISION ON CAPITAL GAINS ...... (710,606) — — (710,606)

PRINCIPAL TO INCOME TRANSFER ...... (12,500,606) 12,500,606 — —

ALLOCATION OF PRINCIPAL TO INCOME ...... (127,805) 127,805 — — ------

CHANGE IN NET ASSETS...... 33,636,084 (2,862,562) (10,608) 30,762,914

NET ASSETS (DEFICIT) – Beginning of year ...... 532,717,213 (31,119,582) 500,000 502,097,631 ------

NET ASSETS (DEFICIT) – End of year ...... $ 566,353,297 $(33,982,144) $ 489,392 $532,860,545 ------

The accompanying notes are an integral part of these financial statements.

38 ______2003 Permanently Unrestricted Temporarily Restricted – Deficit – Restricted – Principal Fund Income Fund Section 10 Fund Total ------REVENUES:

Interest ...... $ — $ 7,114,138 $ 31,252 $ 7,145,390

Dividends ...... 6,382,855 6,382,855

Oil and gas royalties and other ...... 2,138,269 2,138,269 ------

Total revenues ...... — 15,635,262 31,252 15,666,514 ------EXPENSES:

Investment advisory and custodial fees ...... 1,343,847 1,343,847

General and administrative ...... 2,175,133 2,175,133 Federal excise tax provision on net investment income. 131,891 131,891

Property and production taxes ...... 166,080 166,080

Advisory board fees and expenses ...... 320,000 320,000 ------

Total expenses ...... — 4,136,951 — 4,136,951 ------

GRANTS APPROVED – Net ...... (23,904,405) (12,000) (23,916,405) NET REALIZED GAINS ON SALES OF MARKETABLE SECURITIES AND OTHER ASSETS...... 4,943,885 4,943,885

INCREASE (DECREASE) IN UNREALIZED APPRECIATION OF MARKETABLE SECURITIES ...... 11,652,631 (18,881) 11,633,750

INCREASE IN ESTIMATED FAIR MARKET VALUE OF OTHER INVESTMENTS ...... 160,010 160,010

DECREASE IN PREPAID PENSION COST ...... (823,175) (823,175)

FEDERAL EXCISE TAX PROVISION ON CAPITAL GAINS ...... (296,633) (296,633)

PRINCIPAL TO INCOME TRANSFER ...... (13,682,019) 13,682,019 —

SECTION 10 TRANSFER ...... (18,881) 19,252 (371) —

MINERAL REVENUE APPORTIONMENT TO PRINCIPAL FUND ...... 559,253 (559,253) — ------

CHANGE IN NET ASSETS...... 3,318,246 (87,251) — 3,230,995

NET ASSETS (DEFICIT) – Beginning of year ...... 529,398,967 (31,032,331) 500,000 498,866,636 ------

NET ASSETS (DEFICIT) – End of year ...... $ 532,717,213 $(31,119,582) $ 500,000 $ 502,097,631 ------

The accompanying notes are an integral part of these financial statements.

39 STATEMENTS OF CASH FLOWS YEARS ENDED AUGUST 31, 2004 AND 2003

______2004 ______2003 CASH FLOWS FROM OPERATING ACTIVITIES:

Change in net assets...... $ 30,762,914 $ 3,230,995 Adjustments to reconcile change in net assets to net cash used in operating activities:

Depreciation ...... 84,957 88,484

(Increase) decrease in prepaid pension cost ...... (454,771) 823,175

Amortization on bonds ...... 618,607 884,535

Gain on sales of marketable securities and other assets ...... (23,889,105) (4,943,885)

Increase in unrealized appreciation of marketable securities ...... (24,333,543) (11,652,631)

Decrease (increase) in estimated fair market value of other investments ...... 1,247,547 (160,010)

Decrease (increase) in receivables...... 1,074,801 (1,137,981)

Increase (decrease) in unpaid grants ...... 3,006,100 (25,100)

Increase in federal excise taxes payable ...... 493,491 277,317

Decrease in security transactions payable and other liabilities ...... ______(2,361,696) ______(313,231)

Net cash used in operating activities...... ______(13,750,698) ______(12,928,332)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of marketable securities ...... (138,748,198) (120,877,404)

Proceeds from sales of marketable securities ...... 152,479,553 133,850,939

Other ...... ______9,611 ______(33,626)

Net cash provided by investing activities ...... ______13,740,966 ______12,939,909

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ...... (9,732) 11,577

CASH AND CASH EQUIVALENTS – Beginning of year ...... ______53,455 ______41,878

CASH AND CASH EQUIVALENTS – End of year ...... 43,723 53,455 $______$ ______

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION –

Cash paid during the year for Federal excise taxes ...... 335,000 127,000 $______$ ______

The accompanying notes are an integral part of these financial statements.

40 NOTES TO FINANCIAL STATEMENTS YEARS ENDED AUGUST 31, 2004 AND 2003

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Foundation – The Robert A. Welch Foundation (the “Foundation”) is a private foundation created under the terms of the founder’s will. The Foundation is a Texas nonprofit corporation and is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code of 1986 (the “Code”). The purpose of the Foundation is to receive and maintain real and personal property and to use, exclusively within the State of Texas, such income therefrom to assist research in the field of chemistry, with the discoveries and inventions made available to mankind. Basis of Accounting – The accounts of the Foundation, which are maintained on the accrual basis of accounting, reflect investments at estimated fair market value. The Uniform Principal and Income Act of Texas (the “Act”) became effective January 1, 2004. Prior to this date the Foundation allocated a percentage of gross mineral revenue to the Principal Fund on an annual basis. Based on the Act, as of January 1, 2004 the Foundation will continue this allocation of a percentage of the gross mineral revenue to the Principal Fund and will allocate a percentage of certain expenses to the Principal Fund. As of the same date the Foundation has ceased amortization of bond discount and premium. Use of Estimates – Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Financial Statement Presentation – Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Foundation and changes therein are classified and reported as follows: • Unrestricted net deficit – net deficit that is not subject to donor-imposed stipulations. The Foundation classifies its Income Fund as unrestricted. • Temporarily restricted net assets – net assets that are subject to donor-imposed stipulations that require the passage of time or the occurrence of a specific event. The Foundation classifies its Section 10 Fund as temporarily restricted as the fund was established by the last will and testament of Robert A. Welch.

• Permanently restricted net assets – net assets required to be maintained in perpetuity, with only the income to be used for the Foundation’s activities, due to donor-imposed restrictions. The Foundation’s assets are primarily maintained in per- manently restricted net assets of the Principal Fund, according to the last will and testament of Robert A. Welch.

Under the Section 10 Fund, $500,000 of the Foundation’s original principal was set aside to be used for the purpose of extending financial aid to current and former employees of the Foundation or their families, in need. At each year-end, any Section 10 net assets over $500,000 in value are transferred to the Income Fund or Principal Fund, as applicable, of the Foundation.

41 Except as required by the Internal Revenue Code Section 4942 (which may require a distribution of principal), all distribu- tions from the Foundation, other than distributions from the Section 10 Fund, shall be limited to the net income of the Foundation (determined on a cash basis), and shall include no part of the principal which shall be kept intact and never expended, but used as the endowment fund of the Foundation. In accordance with the last will of Robert A. Welch (the “Will”), for purposes of determining the amount of required distri- butions, the assets of the Foundation are accounted for as income and principal by application of the provisions of the Will and the Texas Trust Code and, consistent with the Texas Trust Code, consideration received on the sale or transfer of princi- pal (i.e., realized capital gains and losses), is allocable to principal and, therefore, does not constitute income. Consequently, realized and unrealized gains and losses are considered permanently restricted by the Foundation. To maintain its private foundation status, the Internal Revenue Code Section 4942 (“IRC Section 4942”) requires that 5% of the average assets, as defined by IRC Section 4942, are required to be distributed for its charitable purpose. As provided in the Bylaws of the Foundation, if income is insufficient to meet this requirement, principal may be used. Consequently, when required, a distribution is made from the Principal Fund to the Income Fund. During 2004 and 2003, $12,500,606 and $13,682,019, respectively, were transferred from the Principal Fund to the Income Fund. Cash and Cash Equivalents – The Foundation considers all highly liquid financial instruments with an original maturity of 90 days or less, except those assigned to investment advisors, to be cash and cash equivalents. Other Assets – Other assets are principally comprised of prepaid pension costs (see Note 6), leasehold improvements, property, plant and equipment, and the Section 10 Fund. Unpaid Grants – Grants are recorded as an expense and a liability upon approval of the grants by the Foundation’s board of directors. Such grants are presented net of grants returned of $247,840 and $444,458 and terminations of $826,989 and $2,000,289 for the years ended August 31, 2004 and 2003, respectively (see Note 3).

Fair Value of Financial Instruments – The Foundation’s significant financial instruments consist of cash and cash equiva- lents, investments, receivables, other assets, unpaid grants, federal excise tax payable and security transactions payable and other liabilities. The carrying amounts for cash and cash equivalents, receivables, other assets, unpaid grants, and security transactions payable and other liabilities approximate fair value because of the short-term nature of these items. Investments in marketable securities and other investments are carried at fair value.

Reclassifications – Certain amounts have been reclassified in the prior year financial statements to conform to the classifica- tions used in the current year.

2. INVESTMENTS Marketable Securities – Marketable securities are principally comprised of widely traded stocks and corporate and govern- ment bonds. Securities listed or traded on a national securities exchange are valued at the last sale price on the last business day of the fiscal year or, if there was not a sale that day, at the last bid price. Realized and unrealized gains and losses on marketable securities are computed by comparing cost, determined on an average cost per share basis, to sales proceeds and quoted market values, respectively.

42 Market value, cost and unrealized gains on marketable securities were as follows as of August 31, 2004 and 2003: ______2004 Market Unrealized Value Cost Gains

Equities—stock ...... $420,185,857 $264,907,394 $155,278,463

Fixed income—bonds ...... ______142,645,406 ______139,381,480 ______3,263,926

Total ...... 562,831,263 404,288,874 158,542,389 $______$ ______$ ______

______2003 Market Unrealized Value Cost Gains

Equities—stock ...... $383,564,057 $253,120,289 $130,443,768

Fixed income—bonds ...... ______145,365,803 ______141,600,725 ______3,765,078

Total ...... 528,929,860 394,721,014 134,208,846 $______$ ______$ ______

Other Investments – Other investments are presented at estimated fair market value and are comprised of mineral and fee properties with a historical cost of $3,169,084 and $3,197,789, respectively, at August 31, 2004 and 2003, and an equity investment in a limited partnership with a historical cost of $197,765 at August 31, 2004 and 2003. The Foundation recorded a ($1,247,547) and $160,010 adjustment to these investments in 2004 and 2003, respectively, as a result of the latest appraisals. The following table provides a summary of investments where cost basis of securities exceeds market value aggregated by investment category and length of time that individual securities have been in an unrealized position.

August 31, 2004 ______Less Than 12 Months ______12 Months or Greater ______Total Market Unrealized Market Unrealized Market Unrealized Description of Securities Value Losses Value Losses Value Losses Fixed income—bonds ...... $ 49,428,641 $ 860,934 $ — $ — $ 49,428,641 $ 860,934

Equities—stock...... ______26,902,591 ______3,620,082 ______6,318,877 ______9,224,094 ______33,221,468 ______12,844,176______Total temporarily

impaired securities ...... $______76,331,232 $ ______4,481,016 $ ______6,318,877 ______$ 9,224,094 $ ______82,650,109 $ ______13,705,110______

At August 31, 2004, the Foundation owned 47 securities whose fair market values were below cost. Of these 10 were U.S. government fixed income securities. The balance consisted primarily of equity securities. The fair market value of these investments has declined due to a number of reasons including but not limited to changes in interest rates, changes in eco- nomic conditions, and changes in market outlook for various industries. The Foundation’s management believes that the securities included in the above table are temporarily impaired and still provide the opportunity for value and improvement. The Foundation holds a total of 163 securities, with a net unrealized gain of $158,542,389.

43 3. UNPAID GRANTS The Foundation’s unpaid grants at August 31, 2004, represent commitments for grant disbursements approved but not paid of $18,542,200 in 2005; $11,916,000 in 2006; $4,250,000 in 2007 and $1,505,000 in 2008. The components of unpaid grants as of August 31, 2004 and 2003, were as follows:

2004 2003

Unpaid grants–beginning of the year...... $ 33,207,100 $ 33,232,200 Grants approved–net ...... 27,680,779 23,916,405

Grants disbursed ...... ______(24,674,679) ______(23,941,505)

Unpaid grants–end of year ...... 36,213,200 33,207,100 $______$ ______

The unpaid grants primarily account for the net deficit in the Income Fund of $33,982,144 and $31,119,582 as of August 31, 2004 and 2003, respectively, as the grants are approved but not yet paid as of year end. Grant disbursements are made first from accumulated investment earnings and, if required to meet the minimum distribution requirements of IRC Section 4942, from the Principal Fund.

4. FEDERAL EXCISE TAX The Foundation is classified as a private foundation as defined in the Code. As a private foundation, the Foundation is subject to federal excise tax of 2% on net investment income; however, for the years ended August 31, 2004 and 2003, the Foundation qualified under Section 4940(e) of the Code for a reduced excise tax rate of 1%. The Foundation is required to make certain qualifying distributions in order to maintain its private foundation status. Such required distributions have been or will be accomplished through the payment of grants and the operation of the Foundation’s grant program. The components of the Foundation’s federal excise tax provision (benefit) for the years ended August 31, 2004 and 2003, were as follows:

2004 2003

Federal excise tax provision on net investment income other than realized capital gains ... $______120,068 $ ______131,891

Tax on realized capital gains...... 255,871 19,316

Deferred tax provision on unrealized capital gains ...... ______454,735 ______277,317

Federal excise tax provision on capital gains ...... ______710,606 ______296,633

Total federal excise tax provision ...... 830,674 428,524 $______$ ______

44 The Foundation provides deferred taxes for temporary differences in the recognition of gains and losses for tax and financial reporting purposes. The components of federal excise tax payable as of August 31, 2004 and 2003, were as follows:

2004 2003

Current payable ...... $ 38,756 $ — ...... Deferred payable ______3,526,875 ______3,072,140

Total federal excise tax payable ...... 3,565,631 3,072,140 ______$ $ ______

5. RELATED PARTY TRANSACTIONS

During 2004 and 2003, the Foundation incurred legal fees of approximately $26,436 and $43,674, respectively, from a law firm, a retired partner of which serves on the board of directors of the Foundation.

6. EMPLOYEE BENEFIT PLANS The Foundation sponsors the Robert A. Welch Defined Benefit Retirement Plan (the “Plan”), a noncontributory defined ben- efit plan. All employees of the Foundation are eligible to participate at their date of employment. The present value of accumulated plan benefits reflected in the actuarial valuations as of January 1, 2004 and 2003 was $1,124,381 and $1,081,763, respectively, and the fair value of plan assets was $3,461,930 and $2,964,541, respectively, which resulted in a prepaid pension cost of $2,337,549 and $1,882,778, respectively as of August 31, 2004 and 2003. The Plan was based on the aggregate cost method and included the following assumptions for January 1, 2004 and 2003: Discount rate equal to 7% Expected return on plan assets equal to 7% Expected rate of compensation increase equal to 5%

The Foundation was not required to make any employer contributions during fiscal year 2004 or 2003. The Plan made ben- efit payments of $55,153 and $55,564 during the Plan years ended December 31, 2003 and 2002.

Employees are also eligible to participate in a thrift plan under which all employees may contribute between 3% and 10% of defined compensation. The Foundation makes matching contributions in an amount equal to 100% of the amount of before-tax contributions made on the employees’ behalf that were not in excess of 3% of their compensation plus 50% of the amounts that were between 3% and 6% of employee compensation. The Foundation made contributions of $27,855 and $27,116 to the plan in 2004 and 2003, respectively.

7. COMMITMENTS AND CONTINGENCIES The Foundation leases office space under a 10-year operating lease which expires February 28, 2006. Under the lease, annu- al minimum rentals for the remaining lease term are approximately $181,000 subject to annual operating cost increases. Rental expense for the years ended August 31, 2004 and 2003, was approximately $180,000 and $184,000, respectively.

45

2004 ANNUAL REPORT SUPPLEMENT

The Supplement to the 2004 Welch Foundation Annual Report is available online at www.welch1.org and includes: 48th Conference on Chemical Research Program Welch Conference on Chemical Research 1957-2004 Lectureship Program 2003-2004 Lectureships in Chemistry 1957-2004 Welch Award Recipients 1972-2004 Hackerman Award Recipients 2002-2004 Principal Investigators Listed Alphabetically Abstracts of Current Investigations Publications by Principal Investigators Reported During 2003-2004

47 5555 San Felipe Suite 1900 Houston, Texas 77056-2732 713.961.9884 www.welch1.org